SCHAUMBURG, IL -- Sparton reported fiscal second-quarter net income rose 36% to $1.9 million, boosted by higher demand in all its end-markets.

For the period ended Dec. 31, sales were $55.4 million, up 14% including the acquisition of Byers Peak. Cash flow from operations was $4.5 million.

Sparton president and CEO Cary Wood said, “All three businesses contributed to our improved operating results in the quarter. Sales growth in new and existing customer programs from the Medical and Complex Systems segments continued to outpace customer disengagements and the impact of Siemens dual sourcing, reflective of our increased investment in business development over the past year, while increased US Navy and foreign sonobuoy shipments drove improved operating income contribution from our DSS business as compared to the prior year quarter.”

Sales at the company's EMS unit, called Complex Systems, rose $2 million to $12.5 million for the December quarter, including $2.2 million of increased sales to multiple new and existing customers and $700,000 in increased intercompany sales, partially offset by reduced demand for three customers’ programs. Operating income was $600,000, versus an loss of $100,000 in the prior year quarter. During the period, Complex Systems' gross margin percentage increased to 10.4% of sales from 7.1% the prior year and 5% in the second quarter fiscal 2010.

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