MANKATO, MN -- Winland Electronics reported fourth-quarter net sales of $4.5 million, down 41.5% from a year ago.

For the period ended Dec. 31, the company reported breakeven net income, flat with 2008. Gross margin was 8.8%, down from 13.9% in 2008.

EMS sales for the quarter totaled $3.7 million, down 47.6%. The operating loss was $330,000, versus an operating profit of $476,000 in 2008.

“The fourth quarter was a difficult period from a revenue standpoint, with the sales slowdown that began in the second quarter persisting,” said Thomas de Petra, president and chief executive. “However, we are beginning to see production forecasts that suggest a stronger business climate. During the fourth quarter we experienced a nearly five-fold increase in our quotation activity over previous quarters.”

Winland’s customer base includes companies in transportation logistics and fleet management, industrial, instrumentation, medical and telecommunication.

For the year, net sales were down 21% to $22.5 million. EMS net sales fell 24% to $19.4 million, with customer accounting for $3.1 million of the decline. The net loss was 1.5 million, versus a $1 million net loss in 2008. The electronics manufacturing services segment recorded an operating loss of $103,000 versus operating income of $1.1 million in 2008.