MINNEAPOLIS -- Nortech Systems today reported net income rose 44% on a 9% increase in sales for the quarter ended Sept. 30.

The electronics manufacturing services company cited improved demand from the medical and industrial sectors for the growth.

For the quarter, sales were $28.3 million, up 9% from last year. Operating income jumped 153% to  $420,000, and net income rose to $183,000.

Nortech reported net sales of $85.1 million for the nine months ended Sept. 30, up 18% from 2010. Operating income was up 2% to $977,000, and net income has risen 158% to $955,000.

“Revenue growth was led by our industrial and medical customers, strongly aided by our two most recent acquisitions,” said Mike Degen, president and CEO of the contract printed circuit board assembler. “Strengthening and expanding our customer base has helped offset some weakness in demand we’re experiencing with certain industrial customers.”

Degen noted that macroeconomic uncertainty has been impacting Nortech’s customer base, most significantly in semiconductor capital equipment. However, demand is increasing from defense customers.

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