ST. LOUIS -- LaBarge Inc. reported fiscal fourth quarter net sales fell 16.8% year-over-year to $64.8 million.

For the period ended June 28, net earnings were $2.61 million, down 43% from a year ago.

The results included $12.1 million in sales from the former Pensar, which LaBarge acquired in December 2008. That unit had an after-tax loss of $216,000 during the quarter.

LaBarge is the 35th largest EMS company in the world, according to the CIRCUITS ASSEMBLY Top 50.

Net sales for fiscal 2009 were $273.4 million, including $25.9 million from the Pensar acquisition, down from a record $279.5 million in fiscal 2008. Net earnings were $10.3 million, down from 14.8 million last year. The 2009 net earnings include an after-tax net loss of $289,000 recorded by the Pensar  acquisition, and a one-time after-tax net charge of $3.7 million related to the bankruptcy of a former customer.

For the quarter, gross margin was 17.9%, down 160 basis points on lower sales volume. Gross margin for fiscal 2009 was 18.6%, down 110 basis points. Excluding the impact of one-time charges, the full-year gross margin was 20.1%.

Cash flow from operations was $4.2 million in the quarter and $29.6 million for the year.

Shipments to the defense, natural resources, industrial and medical sectors comprised 92% of LaBarge’s fiscal 2009 net sales, with defense 46% of net sales, natural resources 18%, industrial 18% and medical 9%. Commercial aerospace was 3% of revenues.

Backlogs as of at June 28 were $168 million, down from $221.3 million a year ago and $185.6 miillion sequentially.

Craig LaBarge, chief executive and president said, “The backlog decline is the result of continued weakness in key market sectors and a fiscal 2009 second-quarter reduction of $39.6 million due to the removal of Eclipse orders. The current-year weakness is primarily attributable to the industrial and natural resources market sectors where the majority of our business is tied to capital equipment purchases, which many customers have deferred."

LaBarge guided for fiscal first quarter sales and earnings to fall sequentially but that the two quarters represent the bottom of the company's market. "Bookings in the [fiscal] first quarter have strengthened from [fiscal] fourth-quarter levels and we expect sales and earnings to follow suit in the [fiscal] second quarter," LaBarge said.