MINNEAPOLIS -- Nortech Systems Tuesday reported record net sales of $23.7 million for the fourth quarter ended Dec. 31, 2005, up 16% over 2004. Operating income was $830,973, and net income was $430,571, both up 112% over last year.
For the fiscal year ended Dec. 31, the company reported net sales of $84.2 million, compared with $72.7 million for the 2004 fiscal year, an increase of 16%. Operating income rose 59% to $2.1 million. Net income was up 58% to $928,781.

In a statement, Nortech president and chief executive Mike Degen cited the company's exposure to the medical, military/defense and industrial sectors. "We have strong penetration in three of the markets expected to see the greatest outsourcing growth in the EMS industry -- medical, military/defense and industrial." Nortech's electronics division has seen particularly strong growth from transportation customers.

Nortech expects fiscal 2006 revenues to rise 11 to 13%, to $93 million to $95 million. Earnings continue to increase at more than twice the rate of revenue growth, and corporate revenue growth is outpacing the EMS industry average.

"We continue to foresee growth rates stronger than the EMS industry average, which analysts project at 11.4% through 2009," Degan said.