MINNEAPOLIS -- Nortech Systems today reported net sales of $30.4 million for the fourth quarter ended Dec. 31, 2014, up 4% year-over-year.

Net income slipped 11.2% to $214,000, and operating income was $318,000, down from $482,000 a year ago.

Net sales for 2014 were $112.0 million, compared with $111.1 million reported for fiscal 2013. The EMS firm reported operating income fell 13% to $1.3 million, while net income rose 11.8% to $880,000.

“We’re pleased with our increased net income for the year and increased sales in the fourth quarter,” said Rich Wasielewski, Nortech's  president and CEO. “Sales to medical customers rose for the year, offsetting lower sales to defense customers. Our industrial sales were flat in 2014 but have recently shown signs of recovery, along with the economy. For industrial customers, we ended the year with a stronger position than when we started 2014, including backlog and pipeline.

“We posted a slight gross margin improvement for 2014 and net income was positively impacted by a favorable tax audit settlement and the fourth quarter reinstatement of the federal R&D tax credit,” Wasielewski added.

“We’re heading into fiscal 2015 with our industrial customers and certain sectors within the US economy gaining momentum,” said Wasielewski. “We registered strong growth with medical customers in 2014 and we’re seeing signs of stability with our defense business."

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