SCHAUMBURG, IL – Sparton's Manufacturing & Design Services (EMS) business unit saw September quarter sales drop despite a pair of acquisitions.

Organic sales for the segment were down 25% from a year ago to $42.3 million. Sales from the new businesses added $11.6 million, bringing the overall unit sales to $56.3 million, a 5.6% drop.

Overall fiscal first-quarter 2015 sales were $77 million, up 4% year-over-year.  For the period ended Sept. 30, net income was $200,000, compared to net income of $2.3 million in the same period last year. Operating income was $800,000, compared to $3.5 million in the first quarter of fiscal 2014.

“As anticipated, the first quarter was adversely impacted by the Manufacturing & Design Services segment. There were no additional program losses in the quarter, and we continue to expect to meet our full-year revenue growth target of 3 to 5%, net of acquisitions. The first quarter results reflected certain increased SG&A costs in anticipation of our future growth, as well as a number of unusual charges totaling $1.1 million related to our strategic initiatives,” said president and CEO Cary Wood.

During the quarter, 10 new business programs were awarded with potential annualized sales of $7.9 million.

Sparton also completed the acquisition of Electronic Manufacturing Technology.

“We continue to maintain guidance that, net of acquisitions, we will achieve our 3 to 5% full-year revenue growth target,” Wood said.

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