MINNEAPOLIS -- Nortech Systems today reported record net sales of $20.9 million for the third quarter ended Sept. 30, 2005, up 9% over 2004. Net income was up 10% to $260,357.

Year-to-date sales are up 16%, to $60.5 million, and net income is up 30%, to $498,210.

Mike Degen, Nortech president and CEO, said, "In three of the past four quarters Nortech has reported record sales levels in excess of $20 million. Net income was up 87% over the previous quarter, on the same level of revenue, reflecting the operating leverage we're building into the business."

The company's 90-day order backlog increased to $22.5 million, up 28% during the quarter. Nortech's Aerospace Systems and commercial electronic assembly divisions again posted strong quarterly results in both sales and earnings. Gross margins of its commercial wire and cable continued to struggle.

During the quarter, Nortech announced increased business fro General Electric, which includes both transportation and health care markets. Nortech received an order from GE Rail to supply components for a video camera system. This work is performed at several Nortech locations, headed by the electronics assembly division in Merrifield, MN.

The company guided for fiscal 2005 revenue to rise 13 to 16% over 2004, in the range of $82 million to $84 million.

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