SCHAUMBURG, IL -- Sparton reported September quarter reported net income fell 64% year-over-year to $1.5 million despite gains in the company's EMS operations.

For its first-quarter fiscal 2012 ended Sept. 30, the EMS/ODM company reported sales rose 13% to $51.8 million. Gross profit margin was 16%, compared to 15% for the last year. The backlog at quarter's end was $145.4 million, up 6% sequentially 28% increase over a year ago. During the quarter, the company won nine new business programs potentially worth over $6 million in revenue in fiscal 2012. Cash flow from operations was. $3.2 million.

Sales at the Complex Systems unit, which includes the company's contract assembly operations, were up 2% to $12.5 million. Operating profits rose to $343,000, from $97,000 in the year ago quarter. Gross profit increased to 9%, up 200 basis points on favorable product mix, improved pricing and improved execution.

Medical segment sales increased $8.4 million, in part due to acquisitions. Defense and security segment sales fell $2.3 million.

Sparton president and CEO Cary Wood said, “Our Medical business contributed to the majority of the growth as the impact of the fiscal 2011 acquisitions along with post acquisition growth in both acquired and new customer programs fueled significant increases in both revenue and adjusted operating income within the Medical segment. Somewhat offsetting the favorable medical growth was the decline in our DSS segment revenue and operating income in the first quarter as significant anticipated declines in US Navy sonobuoy shipments were only partially offset by the fulfillment of various foreign sonobuoy orders.”

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