Sparton's Net Q2 Sales Rise, But MDS Unit Stumbles
SCHAUMBURG, IL -- Sparton today reported sales at its Manufacturing and Design Services unit fell 2.2% during its fiscal second quarter despite the addition of multiple acquisitions.
During the quarter a key customer, identified as Fenwal Blood Technologies, reduced its orders from Sparton by $6.8 million. The loss of business aggravated the company's MDS segment performance, which was down 23% organically to $44.4 million for the period ended Dec. 31.
Net sales were $85.6 million, up 1.1% year-over-year. Operating income fell by half to $2.7 million, and net income was down 55% to $1.6 million.
In a statement announcing the results, chief executive and president Cary Wood said, “The second quarter decline in our base business revenue reflects the effects of the continuing Fenwal rebalancing activity as well as other customer programs delayed by customer design issues, customer launch timing, and governmental funding within our Manufacturing & Design Services’ business. Across both our ECP and MDS segments, we closed on a total of 77 program and/or product wins in the second quarter with a first time order value of $17.7 million.”
At quarter's end, sales backlog was approximately $226.6 million, up 18% over the prior year quarter
During the quarter, Sparton completed the acquisition of certain assets of Flemington, NJ-based Industrial Electronic Devices, a $3 million designer and manufacturer of ruggedized displays for the industrial and marine markets; and Argotec, a Longwood, FL-based maker of sonar transducer products and components for the US Navy.
