JACKSON, MI - Sparton Electronics reported December quarter sales of $34.5 million, up 3.9% year-over-year. Net income was $453,000, reversing a loss of $1.52 million last year.

For the second half of 2004, sales rose 14.4% to $79.7 million. Second half net income was $2.9 million, vs. a loss of $3.7 million.

For the quarter, gross margins were 10%, up from 4.3% last year.

Government sales were lower than expected but are anticipated to improve this fiscal year. Industrial sales improved and further gains are anticipated. Aerospace improved but is expected to flatten. Medical and scientific instrumentation was down. As of Dec. 31, the aggregate government EMS backlog was approximately $56 million.

Sparton expects to complete construction on a new plant in Vietnam shortly and begin production later this month. The new company operates under the name Spartronics.