Nortech Systems Announces Board Changes and Reduction

MAPLE GROVE, MN – Nortech Systems Incorporated (NASDAQ:NSYS), a provider of electronic manufacturing services with a market capitalization of $27.69 million and annual revenue of $135.57 million, announced today that Board member Dan Sachs will not seek re-election for the 2025-2026 term. His current term is set to end at the annual meeting of shareholders on May 14, 2025. Additionally, the company’s Board of Directors has decided to reduce its size from eight members to seven. This change, effective as of March 19, 2025, is not due to any disagreements between Mr. Sachs and the company.

The decision to decrease the number of board members aligns with Nortech Systems’ corporate governance practices. According to InvestingPro data, the company maintains strong financial health with a current ratio of 2.59 and trades at an attractive P/E ratio of 6.09, suggesting potential undervaluation relative to its Fair Value. The company confirmed that the move was part of an internal structural adjustment and emphasized that it did not arise from any conflict with Mr. Sachs. The upcoming annual meeting will mark the conclusion of Mr. Sachs’ service, at which point the board reduction will also take full effect.

Nortech Systems, incorporated in Minnesota and with headquarters in Maple Grove, operates within the electronic components sector under the SIC code 3679. The company’s financial year ends on December 31.

As per the SEC filing, the company has not indicated any immediate plans for appointing a new director to replace Mr. Sachs or filling the now-reduced board seat. For deeper insights into Nortech Systems’ governance and financial metrics, InvestingPro subscribers can access comprehensive analysis including 10+ additional ProTips and detailed financial health scores in the Pro Research Report. The reduction in board size may be part of a strategic realignment as the company continues to navigate the electronic manufacturing services industry.

The information disclosed in this article is based on the latest 8-K filing by Nortech Systems with the Securities and Exchange Commission. Investors and interested parties are advised to follow official company announcements for further updates regarding the company’s governance and management decisions.

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