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Written by Mike Buetow
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Monday, 16 November 2009 10:50 |
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SCHAUMBURG, IL -- Sparton Corp. swung to a fiscal first-quarter profit as net income rose $4.8 million to $1.4 million.
For the period ended Sept. 30, sales fell 11% to $48.1 million. Gross profit rose 274% to $7.4 million. Restructuring activities resulted in charges of $876,000.Cash flow from operations was $5.1 million, and the EMS company paid revolving credit facility and term debt totaling $18.9 million. The cash balance was $20.7 million at Sept. 30. For the quarter, Medical Devices and Defense & Security Systems experienced sales increases of 39% and 63%, respectively. EMS sales were down 44% to $19.2 million. Sparton president and CEO Cary Wood said, “First-quarter results exceeded internal expectations and highlight the continued success of our turnaround planning and execution. As we have said, we anticipate a return to profitability during fiscal 2010, but expect our gross margins to fall back to previously stated targets. The first quarter results are reflective of the immediate and aggressive cost reduction and liquidity efforts that took place starting in the third quarter of fiscal 2009. We continue to be cautious and are monitoring each business segment regularly to ensure the changes implemented over the past nine months are sustainable."
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Last Updated on Monday, 16 November 2009 11:12 |
