SCHAUMBURG, IL -- Sparton reported fiscal fourth quarter net income fell 52% to $3 million on a 15% rise in sales. 

For the period ended June 30, the company had sales of $93.4 million. Operating income was $4.9 million, including recognition of $4.2 million of environmental remediation expenses, versus $7.4 million a year ago.

 During the quarter Sparton completed its acquisition of contract assembler Electronic Manufacturing Technology, which is expected to add $25 million in annual revenue. 

Medical segment sales fell $7.7 million, or 17%, exclusing a $1.9 million increase resulting from the acquisition of Aubrey. Gross margin increased one percentage point to 15.5% from a year ago. Segment’s results were adversely impacted by one customer's program rebalancing.

Complex Systems segment sales net sales fell 17% organically, not including $7.5 million in new revenue due to the acquisitions of Creonix and Beckwood and higher intercompany sales. Gross margin increased 1.6 percentage points to 12.7%. Demand at the segment has increased from a number of key customers, Sparton said. 

Defense and Security Systems segment net sales rose 33% organically, not inclding $5 million in new revenue from the acquisition of Aydin. Gross margin increased to 32.7% from 24.7% a year ago.

Commenting on the results, CEO and president Cary Wood said, “We continued to experience year-over-year positive growth trends in fiscal 2014, and have on an annual basis since the turnaround was completed in fiscal 2010. As in prior years, we can see revenue fluctuations within our reporting segments on a quarter-over-quarter basis, but the focus continues to be on managing the overall business to our annual organic growth revenue target of 3 to 5%.”