MINNEAPOLIS -- Nortech Systems today reported net sales of $29 million for the first quarter ended Mar. 31, a 9% increase over 2015.

The electronics manufacturing services provider reversed an operating loss of $202,000, turning in operating income of $221,000 for the recent period. Net income was $63,000, up from a net loss of $193,000 in the prior year. Cash from operations was $1.3 million.

“Our revenue improvement was aided by last year’s acquisition,” said Rich Wasielewski, Nortech Systems’ president and CEO. “Our new medical device engineering services accounted for more than half of the increase.” The acquisition of Devicix was made in the third quarter 2015.

“Performance was mixed across customers and markets, with medical and defense showing revenue and backlog growth. The industrial market faced the most headwinds, especially the transportation, semiconductor and energy sectors.”

The overall revenue increase, higher gross margin and fixed-cost leveraging accounted for the quarterly profit improvement, according to Wasielewski. 

“We’re encouraged by our first quarter results,” he said. “We expect volatility to continue through the first half of the year, but our order pipeline and early engagement opportunities give us optimism for the remainder of 2016.”

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