MINNEAPOLIS – Nortech Systems reported net sales of $29.7 million for the third quarter ended Sept. 30, down 2.3% year-over-year.

Third quarter net income was $63,000, compared with a net loss of $124,000 for the same period last year. Operating income was $190,000, compared with an operating loss of $66,000 for the third quarter of 2015.

For the nine months ended Sept. 30, Nortech’s net sales increased 5% to $87.6 million. The firm reported a net loss of $54,000, compared with a net loss of $695,000 for the same period in 2015. Operating income was $301,000, compared with an operating loss of $751,000 for the same period last year.

“Our medical sales continued their strong momentum in the third quarter, up 9% sequentially and 27% year-over-year, with backlog growing 35% over the prior year,” said Rich Wasielewski, Nortech Systems’ president and CEO. “We’re successfully leveraging our cross-selling opportunities and early engagement design engineering capabilities to gain traction in the higher-growth medical market.”

Industrial sales decreased 25% in the quarter, while defense sales rose 6%. The overall corporate backlog increased 5% during the quarter.