SCHAUMBURG, IL – Sparton reported fiscal second quarter consolidated net sales of $97.4 million, down 6% year-over-year and 3% sequentially.

EBITDA for the quarter ended Jan. 1 was $3.9 million, a decrease of 18.3% compared to the same period last year and 23.3% sequentially.

Operating income was $221,000, compared to $454,000 in the fiscal second quarter 2016 and $1.3 million in the fiscal first quarter 2017.

“We are pleased to report that our second quarter performance reflects the continued improvement in revenues and profitability in our MDS segment, as well as the continued strengthening of our balance sheet,” said Joseph J. Hartnett, Interim president and CEO. “The MDS segment reported net organic revenue growth, along with increased new program wins and stronger margins, compared to the prior quarter and second quarter of fiscal 2016. Our ECP segment did not perform as expected due to delays in production of the Q53G sonobuoy and the need to record a loss on a contract in our rugged display platform."

“Through our continued focus on working capital management and cash flow, we generated strong free cash flow in the quarter of $10 million, principally as a result of the management of inventory levels and our supply chain,” said senior VP and CFO Joe McCormack.

As of Jan. 1, the company had $84 million available under its $175 million credit facility.

Sparton expects fiscal third quarter revenues in the range of $97 million to $101 million.

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