JACKSON, MI -- EMS provider Sparton Corp. reported fiscal second quarter sales rose 40.8% to $53.1 million over the same quarter last year. For the three months ended Dec. 31, the net loss was $1.4 million, vs. a net profit of $202,000 last year. The results were lower due to the redesign and rework of existing sonobuoys to address issues from failed drop tests which occurred during the first quarter of fiscal 2007. First half sales are up 35.7% on higher demand for medical and scientific instrumentation products. Aerospace and industrial sales were also up year-on-year. The net loss was $3.8 million, versus a net loss of $1.1 milliono last year.

The figures include Astro Instrumentation, which Sparton acquired last year.

Reworking the sonobuoys will lower gross profits and margins through May 2007. However, since September 2006, all sonobuoy lots presented have been accepted. As of Dec. 31, the company's backlog of government contracts with no or minimal margins was approximately $26.4 million.

Sparton has been awarded a $13.8 million U.S. Navy contract to build additional sonobuoys. Another government contract is anticipated to be awarded in February or March 2007.