MINNEAPOLIS -- Nortech Systems today reported first-quarter net sales of $25.9 million, down 8.8% from a year ago and up 3.4% sequentially.

Net income for the period ended March 31 was $141,000, aided by the reinstatement of the R&D tax credit, up from $123,000 in 2012. Income from operations was $224,000, including an impairment charge of $74,000 on a building held for sale, down from $328,000 in 2012.

“Our ongoing productivity improvements, including initiatives in automation and lean manufacturing, helped drive our profitability in the quarter as we saw our gross profit percentage increase 190 basis points versus the first quarter of 2012,” said Mike Degen, chief executive officer of the electronics contract assembler.

“We’re continuing to watch costs and manage expenses carefully while waiting for further strengthening in the domestic and global economies,” Degen added.

The EMS company’s 90-day backlogs increased 11% during the quarter, led by defense and medical customers, its first double-digit backlog increase in more than 18 months.