PHOENIX -- Suntron Corp.,a provider of electronics manufacturing services, on Thursday reported net income of $100,000 on revenue of $83.9 million for its fiscal fourth quarter.

Revenues rose 4.4% sequentially, in line with previous company guidance, but fell 28% year-over-year.
Net income improved $1.6 million sequentially and $1.4 million year-over-year. In the fourth quarter 2004, the company reported net sales of $115.8 million.

For the quarter, gross profit rose to $7 million, up from $5.5 million in the third quarter. Gross profit as a percentage of net sales improved 1.4 points to 8.3%, primarily attributable to restructuring and cost containment actions initiated in mid 2005 and improved product mix.

Operating income was $1.2 million, up $1.6 million sequentially and year-over-year.

For the year net sales were down 31% to $328.7 million, primarily due to the loss of a significant customer in the fourth quarter of 2004. Quarterly net sales for 2005 were essentially flat for each quarter and ranged between $80 million to $84 million. Gross profit as a percentage of net sales was down 0.3 points to 5.1%. Gross profit includes restructuring charges of $1.2 million and $300,000 in 2005 and 2004, respectively.

The net loss widened to $11.3 million, versus a net loss of $4.5 million for 2004. The results include restructuring charges of $2.1 million and $1.4 million in 2005 and 2004, respectively. The increase in the 2005 net loss compared to 2004 is primarily attributable to reduced net sales.

Cash flow from operations was $16.5 million compared to a loss of $22.8 million in 2004. Debt outstanding fell by 20% to $47 million at Dec. 31, 2005.

Suntron president and chief executive Paul Singh guided for first quarter net sales to rise up to 5% sequentially on an anticipated one-time increase in sales from an industrial customer.