Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $26.0 million for the third quarter ended Sept. 30, 2010, compared to net sales of $18.7 million for the third quarter of 2009. Operating income for the third quarter was $166,000, compared to an operating loss of $1.1 million for the third quarter of 2009, which included one-time restructuring and impairment charges of $353,000.

For the third quarter of 2010, Nortech Systems reported net income of $127,000, or $0.05 per diluted common share. This compares with a net loss of $854,000, or $0.31 per diluted common share, for the third quarter of 2009.

Nortech Systems reported net sales of $72.4 million for the nine months ended Sept. 30, 2010. This compares with $60.1 million for the same period in 2009, an increase of 20 percent. Operating income for the first nine months of 2010 was $977,000, compared with an operating loss of $5.5 million reported for the same period in 2009, which included one-time restructuring and impairment charges of $998,000.

Net income for the nine-month period was $370,000, or $0.13 per diluted common share, compared with a net loss of $3.7 million, or $1.35 per diluted common share, reported for the same period in 2009.

“We’re encouraged by the overall trends and pleased to report our fourth consecutive quarter of rising sales and backlog levels,” said Mike Degen, president and CEO of Nortech Systems. “Customer confidence is returning across our core markets with sales in the quarter up 39 percent over 2009 levels.” He added that the company’s 90-day backlog position improved 10 percent during the third quarter of 2010, and is up 65 percent from Sept. 30, 2009.

Degen said that increased sales volumes, combined with continued cost-management and lean manufacturing initiatives, are having positive impacts on gross margins and profitability. Concluded Degen, “Our focus remains on strengthening the balance sheet and cash management, while investing in the maintenance of our core businesses and concentrating on our long-term objectives.”