JACKSON, MI -- EMS firm Sparton Corp. reported net sales of $50.5 million for its fourth quarter ended June 30, up 9.6% over last year. Net income fell 95% to $468,000 from $4.94 million last year.
For the year, sales totaled $170.8 million, up 2% from fiscal 2005. Net income fell 88% to $98,000 from $8.11 million in fiscal 2005. Fiscal 2005 results included pretax income of $5.46 million related to a settlement with the EPA.

Government sales rose on higher demand for sonobuoys . Industrial sales, including gaming, improved significantly. Aerospace fell on lower demand for collision avoidance systems. Medical sales improved thanks to new program startups.

EMS backlogs for government programs were $41 million at June 30, down $1 million from last year.

Sales to the six largest customers, including government sales, accounted for 77% of net sales. Sparton's top customer, which the company did not name in a press release, accounted for 20% of sales in fiscal 2006, while another was responsible for 19%.

For the quarter gross margin was 7.8%, down from 10.6% last year. For the fiscal year, gross margin was 8.2%, down from 10.8%.

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