DANDERYD, SWEDEN -- EMS provider NOTE swung to a net loss as sales slumped 19% year-over-year in the fourth quarter.

The net loss for the December quarter was SEK 7.8 million ($1.23 million) and the loss excluding taxes was SEK 6.8 million ($1.07 million) on sales of SEK 240.4 million ($37.8 million).

The operating loss was SEK 5.4 million, down from an operating profit of SEK 15.1 million last year. The operating margin was -2.3%. Cash flow after investments more than doubled to SEK 26.1 million.

For the year, the contract electronics assembler reported sales of SEK 1.03 billion ($161.9 million), down 14.8% from 2011. The operating profit fell by more than half to SEK 26 million, and the operating margin was 2.5%, down from 5.3%. Profit after financial items slid 66% to SEK 19.1 million, and after-tax profit plunged 68% to  SEK 12.6 million.

Since the first quarter of 2012, NOTE has been reporting that one of its customers has been in financial difficulty. This customer’s financial position has deteriorated, and accordingly, NOTE has made a SEK 12.6 million provision for bad debt.

NOTE is one of the leading Northern European outsourced electronics manufacturing companies. The group has approximately 900 employees.