SCHAUMBURG, IL -- Sparton Corp. reported fourth-quarter sales of $58.8 million, up 1.6% year-over-year.

For the quarter ended June 30, the EMS company narrowed its net loss to $8.8 million, up 15.8%.

During the quarter, aerospace sales increased 14% to $21.2 million on price increases and increased volume. Medical/Scientific Instrumentation sales increased 17%, and government sales rose 68%. Industrial/other sales fell 92% to $1.1 million.

Gross profit as a percent of sales increased to 7.6% in the quarter as margins improved from price increases, improved performance and lower overhead. The company took $6 million in one-time impairment and restructuring charges. Cash on hand rose from $5.5 million at Dec. 31 to $36.3 million at June 30, and net inventory levels fell from $55.7 million to $38.4 million

For the fiscal year ended June 30, the company reported sales fell 3.5% to $221.9 million. The net loss rose 21% to $15.8 million.

In a statement, president and CEO Cary Wood said, “While the net loss for the year is disappointing, we are encouraged by the progress we have made in the second half of the year. We anticipate that restructuring activities will come to an end in the near future and that the associated charges will be primarily incurred during fiscal 2010. "Although we expect a modest decline in revenue in the upcoming fiscal year, we expect that the recurring losses of the past two years will end and that the company will return to profitability." 

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