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Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $25.5 million for the third quarter ended Sept. 30, 2012, compared to net sales of $28.3 million for the third quarter of 2011. Operating income for the third quarter of 2012 was $329,000, compared to $420,000 for the third quarter of 2011.
For the third quarter of 2012, Nortech Systems reported net income of $105,000, or $0.04 per diluted common share. This compares to net income of $183,000, or $0.07 per diluted common share, for the third quarter of 2011.
Nortech Systems reported net sales of $81.9 million for the nine months ended Sept. 30, 2012, compared to $85.1 million for the same period in 2011. Operating income for the first nine months of 2012 was $976,000, compared to $1,046,000 reported for the same period in 2011. Net income for the nine-month period was $354,000, or $0.13 per diluted common share. This compares to $411,000, or $0.15 per diluted common share, reported for the same period in 2011, before a non-operating gain related to the Winland acquisition. With the non-operating gain, Nortech reported net income of $955,000, or $0.35 per diluted common share, for that period.
“Our diverse customer base is a definite strength because each customer is experiencing the current economic situation differently,” said Mike Degen, president and CEO of Nortech Systems. “Some appear to be gaining momentum, while others are still making inventory adjustments or delaying orders.
“We started the year sharing optimism with our customers about a second-half recovery that is unfortunately not materializing,” Degen noted. “This is particularly true for many industrial customers -- our largest segment.
“Lower overall sales volume in the quarter impacted our plant utilization and profitability,” added Degen, explaining that cost reductions and cost-avoidance initiatives were implemented to better match demand.
Along with reaffirming Nortech Systems’ long-term objectives, Degen emphasized his company’s ongoing commitment to deliver the right combination of engineering, manufacturing and supply chain services while continuing to closely monitor all customers and markets.