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Nortech Systems Incorporated, a leading provider of full-service electronics manufacturing services (EMS), today reported net sales of $30.4 million for the fourth quarter ended December 31, 2014, a four percent increase over net sales of $29.3 million for the fourth quarter of 2013. Net sales for the 2014 fiscal year ended December 31 were $112.0 million, compared with $111.1 million reported for fiscal 2013.
For the fourth quarter of 2014, operating income was $318,000, compared with $482,000 for the fourth quarter of 2013. Fourth quarter net income of $214,000, or $0.08 per diluted common share, compares with $241,000, or $0.09 per diluted common share, in the fourth quarter of 2013. For fiscal 2014, Nortech Systems reported $1.3 million in operating income, compared with $1.5 million in operating income for fiscal 2013. Net income for fiscal 2014 was $880,000, or $0.32 per diluted common share. This compares with $787,000, or $0.29 per diluted common share, for fiscal 2013.
“We’re pleased with our increased net income for the year and increased sales in the fourth quarter,” said Rich Wasielewski, Nortech Systems’ president and CEO. “Sales to medical customers rose for the year, offsetting lower sales to defense customers. Our industrial sales were flat in 2014 but have recently shown signs of recovery, along with the economy. For industrial customers, we ended the year with a stronger position than when we started 2014, including backlog and pipeline.
“We posted a slight gross margin improvement for 2014 and net income was positively impacted by a favorable tax audit settlement and the fourth quarter reinstatement of the federal R&D tax credit,” Wasielewski added.
“We’re heading into fiscal 2015, our 25th year in business, with our industrial customers and certain sectors within the U.S. economy gaining momentum,” stated Wasielewski. “We registered strong growth with medical customers in 2014 and we’re seeing signs of stability with our defense business. We are planning to celebrate our 25th anniversary and salute all our customers, employees, suppliers and shareholders for their support over the years,” he concluded.
About Nortech Systems Incorporated
Nortech Systems Incorporated, based in Wayzata, Minn., is a full-service electronics manufacturing services (EMS) provider of wire and cable assemblies, printed circuit board assemblies and higher-level complete box build assemblies for a wide range of industries. Markets served include industrial equipment, aerospace/defense and medical. The company has manufacturing capabilities in the U.S. and Latin America. Nortech Systems, Inc. is traded on the NASDAQ Stock Market under the symbol NSYS.