MINNEAPOLIS -- Nortech Systems today reported net sales of $26.5 million for the first quarter ended Mar. 31, up 1.5% from a year ago. 

The EMS company showed an operating loss of $202,000 for the quarter, compared with operating income of $236,000 in 2014. The net loss was $193,000, versus net income of $86,000 in 2014.

Industrial, the firm's largest market, was up 17% during the period.

In a press release, Nortech president and CEO Rich Wasielewski said, “After finishing 2014 strong, our first-quarter profitability was impacted by a number of factors. These included our product mix, ramp-up costs for new programs and global economic conditions. We’re adjusting our cost structure to better match our short-term demand and business conditions, which we see continuing into the second quarter.”

The company’s 90-day backlog rose 6% since Dec. 31, 2014, and the firm is adding printed circuit board assembly capabilities in Mexico and expanding to Shanghai.

“We expect to start realizing the benefits of these initiatives and activities in the second half of 2015,” Wasielewski said.