SCHAUMBURG, IL -- Sparton today announced fiscal third quarter sales at its Manufacturing & Design Service segment rose 9.7% to $68.2 million.

Operating income at the unit plunged 73% to $1.14 million.

During the March quarter, the division recorded new program wins with expected annual revenue of $16 million when fully ramped into production. Segment backlog was $160 million at quarter's end.

For the period ended Mar. 27, overall net sales were up 9.8% year-over-year to $102.2 million. Net income fell 89% to $231,000. The gross profit margin was 18.7%, the operating margin was 2.6% and EBITDA margin was 6.4%.

The company finalized the closure of its Lawrenceville, GA, EMS plant, which it acquired as part of a merger with Spectral Response. It also finished a previously announced consolidation of its Irvine, CA, facilities.

Joseph J. Hartnett, interim president and CEO, said in a statement, “Our fiscal third quarter presented the company with a number of events that made this an unusually challenging quarter. We experienced a change in executive leadership, the announcement of activities related to a strategic alternative review process, the engagement of activist shareholders and the continued integration of our prior year’s acquisitions. In spite of these challenges, we made significant progress towards implementing changes that we believe will contribute to our long-term operating performance.”

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