PHOENIX -- Electronics manufacturing provider Suntron Corp. reported net sales of $69.3 million and an operating loss of $4.7 million for its fourth quarter ended Dec. 31. The results include $1.7 million of restructuring charges due to the closure of two U.S. manufacturing operations. The net loss was $5.7 million, versus net income of $100,000 in 2005.

For the year, net sales were down 2% to $320.8 million. Gross profit as a percentage of net sales improved to 5.6% for 2006, up 0.5 points. The gross profit includes restructuring charges of $2.9 million for 2006 and $1.2 million for 2005. The company also cut debt by 33%, to about $32 million. The net loss widened $600,000 to $11.9 million, including a writeoff of debt issuance costs of $1.4 million and restructuring charges of $3.5 million.

For the quarter, the company saw a decrease in gross profit due to higher restructuring costs and lower net sales. Sequentially, gross profit decreased $4.1 million.

In 2006, Suntron closed business units in Lawrence, MA, and Olathe, KS, In February, it sold its Garner, IA, EMS plant for $4.8 million, a gain of approximately $500,000.

Although the 2006 financial results do not reflect it, we believe the restructuring actions taken during the year have poised the company for a promising future,'' stated Paul Singh, Suntron's president and chief executive officer.

"We believe that the majority of our restructuring efforts should be complete by the end of the first quarter. As we execute our 2007 business plan, our focus will be on profitable growth, working capital management, and quality customer service," said Singh.

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