MINNEAPOLIS, MN -- Nortech Systems today reported net sales for its fourth quarter rose 3% year-over-year to $31.4 million.

For the period ended Dec. 31, net income fell 42.5% to $123,000, while operating income rose 3.5% to $329,000.

For the year, net sales were up 3% to $115.2 million. The net loss was $571,000, versus net income of $880,000 in 2014.

The results include the second-half impact of Nortech's acquisition of Devicix, a medical devices firm. Nortech bought the company for an undisclosed amount in June.

The company's chief executive said he was pleased with the EMS firm's close to the year, which was an improvement over the first three quarters.

“Our performance rebounded in the fourth quarter, finishing an eventful and challenging fiscal 2015,” said Rich Wasielewski, Nortech Systems’ president and CEO. “The increased revenue, ongoing cost-containment initiatives and reduced ramp-up costs led to profit improvements in the quarter.

“We’re pleased with the progress on our strategic initiatives and our business-development efforts,” he continued. “Our medical device engineering acquisition has been accretive and also fosters early-engagement opportunities targeted for this growth market.

Wasielewski said 2016 is shaping up much like 2015. “Business conditions in 2016 are looking similar to last year, with mixed performance continuing among our global customers and markets. Our leading indicators – pipeline, backlog and engineering project activities – are in better condition than a year ago with some quarterly volatility expected. With several key investments moving into the execution stage, we’re focusing on growth in the medical market and profit improvements from operational efficiency and asset utilization.”