Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $28.3 million for the third quarter ended Sept. 30, 2011, a nine percent increase over net sales of $26.0 million for the third quarter of 2010. Operating income for the third quarter of 2011 was $420,000, compared to $166,000 for the third quarter of 2010.
For the third quarter of 2011, Nortech Systems reported net income of $183,000, or $0.07 per diluted common share. This compares with net income of $127,000, or $0.05 per diluted common share, for the third quarter of 2010.
Nortech Systems reported net sales of $85.1 million for the nine months ended Sept. 30, 2011. This compares with $72.4 million for the same period in 2010, an increase of 18 percent. Operating income for the first nine months of 2011 was $1.0 million, compared with operating income of $977,000 reported for the same period in 2010.
Net income for the nine-month period was $955,000, or $0.35 per diluted common share, compared with $370,000, or $0.13 per diluted common share, reported for the same period in 2010.
“Revenue growth was led by our industrial and medical customers, strongly aided by our two most recent acquisitions,” said Mike Degen, president and CEO of Nortech Systems. “Strengthening and expanding our customer base has helped offset some weakness in demand we’re experiencing with certain industrial customers.”
Degen added that macroeconomic uncertainty in the U.S. and worldwide has been impacting Nortech’s customer base, most significantly in semiconductor capital equipment. However, demand is increasing from defense customers.
“In this difficult business climate, we’re successfully managing our business to suit economic conditions,” commented Degen. “We are also pleased with our progress integrating our latest acquisitions -- we began to see profitability improve along with revenue.
“Meeting the challenges of an uncertain economy while continuing our successful integration activities and other lean initiatives will keep Nortech on the path to achieving our long-term goals,” Degen concluded.