Nortech Systems Incorporated has reported net sales of $19.8 million for the fourth quarter ended December 31, 2009, compared with net sales of $27.0 million for the fourth quarter of 2008. Operating income was $8,456 for the fourth quarter, compared with $173,325 for the fourth quarter of 2008. The company reported a quarterly net loss of $145,347, or $0.05 per diluted common share, in the fourth quarter of 2009, compared with net income of $76,970, or $0.03 per diluted common share, for the fourth quarter of 2008.

For the fiscal year ended December 31, 2009, the company reported net sales of $79.9 million, compared with $121.9 million for the 2008 fiscal year. Nortech Systems reported an operating loss of $5.5 million, including one-time restructuring charges of approximately $1.0 million, for the 2009 fiscal year, compared with operating income of $3.5 million reported for fiscal 2008. The net loss for the 2009 fiscal year was $3.8 million, or $1.40 per diluted common share, and $1.18 per diluted common share before one-time restructuring charges and related tax effect. This compares with 2008 fiscal net income of $1.8 million, or $0.64 per diluted common share.

"The revenue and profit declines we experienced throughout 2009 were typical for many in our industry," said Mike Degen, Nortech Systems' President and CEO. "Analysts agree that the weakening in electronics manufacturing services (EMS)--both in speed and breadth--was unprecedented in our industry's history."

In response to these challenges, Nortech Systems undertook significant cost-reduction and cash-management initiatives during the first quarter of 2009. These were followed by plant consolidations and capacity restructuring in the second and third quarters. In September 2009, the company began realizing benefits and savings from these activities. Nortech Systems returned to operating profitability in the fourth quarter after posting a $1.1 million operating loss in the third quarter of 2009.

"We're encouraged by recent trends in our financial performance and customer demand," added Degen. "Net sales rose 6.4% sequentially in the fourth quarter and our backlog is also growing," added Degen. Nortech's 90-day backlog began rising in the latter stages of 2009, increasing 25% from September 30, 2009, to December 31, 2009.