Winland Electronics, Inc., a leading designer and manufacturer of custom electronic control products and systems, has announced net sales of $5.1 million for the third quarter ending September 30, 2009 versus $7.0 million, down 26.9%, in the comparable period in 2008. The company reported a net loss of $695,000, or $0.19 per share, versus a net profit of $118,000, or $0.03 per share, in the third quarter of 2008.

The company's EMS segment sales for the quarter totaled $4.2 million versus $6.1 million in the second quarter of 2008, a decrease of 30.1% year-over-year. The segment recorded an operating loss of $332,000 in the period, versus an operating profit of $553,000 in the third quarter of 2008. Net sales for Winland's Proprietary Products segment totaled $894,000, down $58,000, or 6.1%, from the comparable period in 2008. The company's Proprietary Products segment recorded an operating profit of $133,000 versus an operating profit of $130,000 in the comparable period of 2008.

"In spite of encouraging signs of life within the manufacturing and technology sectors, during the quarter our clients continued to hold their inventory levels very low and have been reluctant to place new production orders," said Thomas de Petra, President and Chief Executive Officer of Winland Electronics. "Sales of our proprietary products, however, are encouraging, having improved significantly on a sequential basis over the second quarter and in profitability both sequentially and year-over-year."

Overall operating expenses were down $55,000 or 5.4%, from the comparable period in 2008. G&A expenses were down 18.8%, while sales and marketing spending was up 15.7%, as a result of increased sales efforts.

"After laying the foundation over the past several quarters with operational and quality improvements, we continue to push hard with aggressive sales efforts that compliment recent successes with new customer acquisitions," de Petra said. "This effort is a top priority, along with achieving a healthy level of sales relative to our cost structure."