MINNEAPOLIS -- Nortech Systems today reported record net sales of $27.7 million for the fourth quarter ended Dec. 31, up 17% over 2005. Net income was up 1% to $434,578. For the year ended Dec. 31, the company reported record net sales of $105.2 million, up 25%. Net income rose 41% to $1.3 million.

"In 2006 we made significant progress on several fronts," said Mike Degen, Nortech's president and CEO. "We surpassed $100 million in sales and finished the year with a healthy revenue increase over 2005. We also posted solid gains in operating income and net income."

Last month, Nortech finalized a deal to to acquire Suntron Corp.'s Midwest operation in Garner, IA. The move strengthens Nortech's capabilities in printed circuit board assemblies and higher-level complete box build assemblies, while opening new markets such as agriculture and oil and gas.

During 2006, Degen said higher costs for energy and commodities were offset by volume increases and operational leveraging. Another strategic focus for Nortech is the launching of a comprehensive Lean manufacturing initiative aimed at further cost reductions and continual improvements. This program has a near-term goal of increasing the company's net profit significantly.

"We anticipate Nortech will continue to grow and outperform the industry at the revenue line, while continuing to leverage operations and profits," he Degen.