Sparton Swings to Q2 Profit
SCHAUMBURG, IL -- Sparton Corp. reported results second-quarter fiscal 2010 net income of $3.2 million, reversing a net loss of $2.8 million from a year ago.
For the period ended Dec. 31, the electronics manufacturing services provider said operating income was $1.3 million on net sales of $47.2 million. Revenues were down 13.4% from a year ago. The company took $1 million in restructuring charges during the quarter, and was aided by a tax benefit of $1.9 million.
EMS sales plunged 58% from last year to $14 million for the period. Defense and security systems, and medical devices grew 144% and 14%, respectively.
Sparton President and CEO Cary Wood said, "The EMS business continued to reflect the effects of the significant changes implemented during the past 15 months, including the closure of three facilities and our disengagement from several significant customers.”
For the period, the gross profit percentage was 17%, up 10 points on favorable product mix, improved pricing, favorable material costs and the effects of successful sonobuoy drop tests.
