MANKATO, MN -- Winland Electronics reported second-quarter net sales of $5.7 million, down 16.5% from last year.

For the period ended June 30, the Tier IV EMS company reported a net loss of $714,000, versus a net loss of $765,000 in the second quarter 2008.

The company’s electronic manufacturing services sales for the quarter totaled $5 million, down 16.1% from 2008, and an operating loss of $65,000, versus an operating profit of $40,000.

Net sales for Winland’s proprietary products segment totaled $729,000, down 19%, with an operating profit of $43,000.

Gross margin was 8.5%, down 1.3% from 2008. Overall operating expenses were down $236,000, or 18.3%, from 2008. R&D spending was lower by $272,000 (75.7%).

“We continue to experience a significant level of caution within our customer base, a situation that in the second quarter affected three of our four largest customers,” said Thomas de Petra, president and chief executive. "Second-quarter results reflected across-the-board softness in the EMS industry that has persisted for almost a year, as well as a continuation of sales pressure within our proprietary products division."