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Nortech Systems Incorporated (Nasdaq: NSYS), a leading provider of full-service electronics manufacturing services (EMS), today reported net sales of $25.0 million for the fourth quarter ended December 31, 2012, compared with net sales of $29.1 million for the fourth quarter of 2011. Operating income for the fourth quarter of 2012 was $485,000, compared with $466,000 for the fourth quarter of 2011. The company reported quarterly net income of $276,000, or $0.10 per diluted common share, in the fourth quarter of 2012, compared with $235,000, or $0.09 per diluted common share, for the same period of 2011.
“We finished 2012 strong – with our highest quarterly income of the year and strongest operating results in more than two years,” said Mike Degen, Nortech Systems’ chief executive officer. “As the year went on, we adjusted our cost structure to the sluggish economy and managed cash aggressively.” He cited the $5.5 million improvement in cash flow from operating activities throughout fiscal 2012, with the majority of it generated during the fourth quarter.
For the fiscal year ended December 31, 2012, the company reported net sales of $106.9 million, compared with $114.2 million reported for fiscal 2011. Nortech Systems reported $1.5 million in operating income for both fiscal 2012 and fiscal 2011. Net income for fiscal 2012 was $629,000, or $0.23 per diluted common share. This compares with $1.2 million, or $0.43 per diluted common share, reported for fiscal 2011, which included a non-operating bargain purchase gain of $528,000, or $0.19 per diluted common share, related to an acquisition.
“Throughout 2012, our medical segment sales were led by medical-device customers in particular; our medical sales rose sequentially each quarter and our year-end backlog increased by 24 percent,” continued Degen. Nortech’s industrial-market sales decreased during 2012 due to global economic uncertainty. Defense sales decreased as contractors were cautious about budget negotiations and sequestration.