MINNEAPOLIS -- Micro-tier EMS firm HEI Inc. swung to a second-quarter net loss despite a small uptick in revenues. The company cited program delays and expansions for the loss.

For the period ended June 30, the contract electronics assembler lost $351,000, down from net income of $339,000a year ago. Sales were $9,648,000, up 4.1% from 2011.

“We are making significant progress in ramping up the manufacturing for our Victoria operation in support of the two contracts we secured in April providing components to two government contractors for the Joint Tactical Radio Systems (JTRS) for the US military," said chief executive Mark B. Thomas. "The larger impact is expected to be seen in the third and fourth quarters of this year."

Overall sales for the first six months for HEI's Victoria operation are up 39% over 2011 on increased demand, and backlogs are at their highest levels in five years.

The company's Boulder, CO, operation was slowed by the postponement of a design contract and lower overall manufacturing sales. Overall sales are down 29% at the site for the first six months.

An expansion to an operation in Tempe, AZ, was completed in April and added about 25% to overall capacity.

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