Winland Electronics, Inc. (AMEX: WEX), a leading designer and manufacturer of custom electronic control products and systems, today announced net sales of $5.1 million for the second quarter ended June 30, 2010, down $600,000, or 10.5 percent compared with the corresponding period in 2009. The company reported a net loss of $822,000, or $0.22 per share versus a net loss of $714,000, or $0.19 per share in the comparable quarter in 2009. EMS sales for the quarter totaled $4.4 million versus $5.0 million in the second quarter of 2009, a decline of 12.5 percent. On a sequential basis, EMS sales were up 18.5 percent over the $3.7 million the company reported in the first quarter. Net sales for Winland’s Proprietary Products segment for the quarter totaled $751,000 consistent with the comparable period in 2009. “We experienced strong sequential growth from new customers in the second quarter, clearly demonstrating that our long-term strategy is gaining momentum,” said Thomas de Petra, Winland’s President and Chief Executive Officer. “We’re now building controls for alternative energy applications, and for products used in transportation safety, environmental and biotechnology research, industrial analysis, and measuring and monitoring devices.” The company recorded an operating loss for the quarter of $794,000 versus an operating loss of $565,000 in the comparable quarter in 2009. Gross margin totaled 3.8 percent versus 8.5 percent in the comparable period in 2009. The company reported an operating loss of $205,000 in its EMS business for the quarter versus operating income of $22,000 in the comparable period in 2009. The company’s Proprietary Products business recorded an operating profit of $35,000 versus an operating profit of $43,000 in the second quarter of 2009. “Although the quarter-to-quarter sequential growth from new EMS customers is encouraging, sales during the second quarter were not enough to offset the sales decline from our largest three customers and the absence of a large design engineering project,” de Petra said. Sales to the company’s top three customers were down $1.2 million and $2.4 million year-over-year for the second quarter and the first six months of 2010, respectively.