Nortech Systems Reports First Quarter Results;
Operating Profits Increase 15%

MINNEAPOLIS – Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $28.4 million for the first quarter ended March 31, 2012. This compares to net sales of $29.0 million for the first quarter of 2011.

Income from operations rose 15 percent for the first quarter of 2012, to $328,430. This compares with $286,662 for the same period in 2011. Net income for the first quarter of 2012 was $122,805, or $0.04 per diluted common share. This compares with last year’s $98,181, or $0.04 per diluted common share before non-operating gain from acquiring certain assets of Winland Electronics’ EMS operations. The net after-tax impact of the non-operating gain increased net income in the first quarter of 2011 by $528,007, or $0.19 per diluted common share.

“We’re pleased with our improvements in operating profits during the first quarter,” said Mike Degen, Nortech Systems’ president and CEO. “The progress we’ve made integrating our acquisitions, along with our ability to better control costs and expenses, helped us generate $2.7 million in operating cash flow for the quarter.”

Degen noted that revenue results across the company remain mixed in the sluggish economic environment. “We’re seeing encouraging signs from certain industrial and medical customers, evidenced by our backlog positions in these markets registering modest single-digit increases since year-end,” he added.

In the quarter, Nortech Systems was awarded significant design engineering projects from customers in both the industrial and medical markets. Degen cited these wins as examples of how Nortech’s internal realignment, implemented in January, improves the company’s ability to target new business opportunities across three key markets – industrial, medical and defense.

Last week Nortech amended its financing agreement with Wells Fargo Bank, N.A. and its Business Credit operating division. The fourth amendment to the third amended and restated credit agreement provides for a line of credit of $13.5 million through May 2015, a $1.8 million real estate term note with a maturity date of March 2027, which replaces the $0.9 million note set to expire on May 31, 2012, and a new term loan of up to $2.0 million for capital expenditures to be made through the end of 2013.

Conference Call
Nortech Systems announces a conference call to be held at 10:00 a.m. (CDT) on Thursday, May 10, to discuss the company’s first quarter results. Anyone interested in participating in the conference can access the call by dialing 877-407-8031 from within the United States, or 201-689-8031 if calling internationally. An audio webcast and replay of this conference call can be accessed at the investor relations portion of Nortech Systems’ website at www.nortechsys.com or at www.investorcalendar.com. A podcast (MP3 download) will also be available. The telephone replay will be available through May 24, 2012, by dialing 877-660-6853 (from U.S.) or 201-612-7415 (International). To access the replay, the account number 286 and conference ID 393913 are both required.

About Nortech Systems Incorporated
Nortech Systems Incorporated (www.nortechsys.com), based in Wayzata, Minn., is a full-service electronics manufacturing services (EMS) provider of wire and cable assemblies, printed circuit board assemblies, and higher-level complete box build assemblies for a wide range of industries. Markets served include industrial equipment, aerospace/defense and medical. The company has manufacturing capabilities and operating partners in the U.S., Asia and Latin America. Nortech Systems Incorporated is traded on the NASDAQ Stock Market under the symbol NSYS.

Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. While this release is based on management’s best judgment and current expectations, actual results may differ and involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the forward-looking statements include, without limitation: volatility in market conditions which may affect market supply of and demand for the company’s products; increased competition; changes in the reliability and efficiency of operating facilities or those of third parties; risks related to availability of labor; commodity and energy cost instability; general economic, financial and business conditions that could affect the company’s financial condition and results of operations; as well as risk factors listed from time to time in the company’s filings with the SEC.

Condensed Statement of Income

Condensed Balance Sheets

Contact: Richard Wasielewski
Nortech Systems Incorporated
(952) 345-2244
or
Warren Djerf
Brookside Communications Group
952-920-3908 / warren@brookcomm.net

The following is a short description of design suggestions for use in your flat molded cable designs. Nortech Systems provides high quality flat molded cable assembles for the Aerospace and Defense industries.

The objective is to provide for the maximum flexibility, a very thin package and produce a product that meets or exceeds the electrical and environmental performance requirements, all while keeping cost to a minimum.

Cast polyurethane flat cable assemblies are a least cost alternative and more rugged than flexible and semi rigid printed wiring boards, especially when the physical size is large and/or the production quantity is small to medium.

WIRE SELECTION:

1. MIS-35755 Wire and cable, Ultra- flexible, FEP insulated.
• Available in Type U and S, unshielded and shielded, respectively.
• Range 20 to 28 AWG, 24 AWG suggested with insulated OD 0.024 inch.
• Very high stranding supports high flex and excellent electrical properties.
• White single conductor, red and white two conductor cables, and white, red and black three conductor cables.
• This wire and cable is recommended as component wires in cast polyurethane flat cable assemblies by US Army Missile Command. Not for use as hook-up and in open wiring harnesses.
2. MIL-W-22759/32 Wire.
• Suggest AWG 24 to 30 to maintain flexibility.
• All colors available, but various colors not needed, as repairability is limited.
• Less expensive, but not as flexible as MIS wire.

CABLE MOLDING COMPOUND SELECTION:

• MIS-35759B Polyurethane cable molding compound. Aerospace Systems standard material for the cable mold is Hysol US-4028 amber. (CAGE CODE 12405)
• Considered as a missile standard for flat cable molding compound.

CONNECTOR MOLDING COMPOUND SELECTION:

• MIS-35273F Application of polyurethane and epoxy molding compounds.
• Two types I and II and three classes A, B and C. Selection is based on service application and flexibility. Temperature range from –54 degrees to + 200 degrees F. Hardness from 45 Shore A to 80 Shore A, softer is more flexible. Suggest type I, class B.
• For class A, Shore A hardness 70 minimum, consider MilM-24041 Cat B, Type 1, Molding and potting compound, color black. Aerospace Systems standard material for connectors and junction molds is Cytec EN-1556 (CAGE CODE 16245) with a standard Shore A hardness of 80.

OVERALL SHIELDING:

• CHO-FLEX 501, CAGE CODE 18565 coating or alternate 73-00008, CAGE CODE 07700.
• Overall shielding protective coating CHO-SHIELD 4937 or alternate 73-00009, CAGE CODE 07700.

MOLDING APPLICATION NOTES:

• Aerospace Systems suggests that the minimum spacing between the OD of insulated component wires or between the OD of two and three conductor shielded cables be 0.015 inch. This 0.015 inch minimum applies also to the edge conductors and the edge of the molded cable, and the conductor OD and the surface of the cable.
• Overall molded cable thickness using MIS 24 AWG wire thus calculates to be 0.054 inch, we suggest a note stating that the molded cable should be 0.065 inch maximum to allow of manufacturing tolerances.
• Surface voids should not exceed 0.030 inch diameter. Voids extending below the surface should not exceed 0.060 inch diameter. Mold separation lines are acceptable.

Download the Full PDF

CONNECTORS

• MIL-C-28875 connectors for multiple termini
• MIL-C-83522 connectors for single terminus
• Commercial grade ST connectors
• Commercial grade SC connectors
• Commercial grade FC APC connectors (reduced return loss)

CONNECTORIZATION

• Epoxy (shipboard approved) – Most common
• Pre-loaded adhesive
• Crimp
• Chemical (ovenless)
• UV Curable

POLISH TYPES

• Physical Contact (PC) both flat and domed
• Enhanced polish
• FC APC
• Multi and single mode

CABLE

• MIL-PRF-8045 includes all types of cable including multiple fiber multi and single mode
• Custom hybrid cables (combined multi and single mode)
• Custom composite cables (combined optical fiber and copper conductors)
• Commercial cable

INSPECTION/TESTING

• 400X Visual Inspection
• Insertion loss for multi and single mode
• Return loss for single mode (+6 to –60 dbm)

TRAINING AND METHODS

• MIL-STD-2042 trained personnel to insure quality. All assemblies built to MIL-STD-2042 requirements.

MOLDED STRAIN RELIEFS

• Any type of connector can be overmolded to provide superior strain relief. With suitable connectors a waterproof, rugged fiber optic cable assembly is achievable.

TERMINI

• MIL-T-29504/14 and /15 for MIL-C-28876 connectors
• MIL-T-29504/4 and /5 for MIL-DTL-38999 connector 16 AWG contact cavities
• Non-military spec contacts for MIL-DTL-38999 connector 20
• AWG contact cavities

Download the Full PDF

Nortech Systems to Report First Quarter Results May 9;
Quarterly Conference Call May 10 at 10:00 a.m. (CDT) 877-407-8031

MINNEAPOLIS – Nortech Systems announces a conference call to be held at 10:00 a.m. (CDT) on Thurs., May 10, 2012, to discuss the company’s first quarter results, which will be released after the market closes on May 9. Anyone interested in participating in the conference can access the call by dialing 877-407-8031 from within the United States, or 201-689-8031 if calling internationally. An audio webcast and replay of this conference call can be accessed at the investor relations portion of Nortech Systems’ website at www.nortechsys.com or at www.investorcalendar.com. A podcast (MP3 download) will also be available. The telephone replay will be available through May 24, 2012, by dialing 877-660-6853 (from U.S.) or 201-689-8031 (International). To access the replay, the account number 286 and conference ID 393913 are both required.

Nortech Systems Incorporated (www.nortechsys.com), based in Wayzata, Minn., is a full-service electronics manufacturing services (EMS) provider of wire and cable assemblies, printed circuit board assemblies and higher-level complete box build assemblies for a wide range of industries. Markets served include industrial equipment, aerospace/defense and medical. The company has manufacturing capabilities and operating partners in the U.S., Asia and Latin America. Nortech Systems, Inc. is traded on the NASDAQ Stock Market under the symbol NSYS.

Contact:
Warren Djerf, Brookside Communications Group
(952) 920-3908 / warren@brookcomm.net

MINNEAPOLIS – The Aerospace Systems division of Nortech Systems, Inc. (Nasdaq: NSYS) recently updated its international quality certification to AS9100:2009 (Rev C). This latest revision to the AS9100 quality management standard for aviation, space and defense organizations includes many enhanced requirements, from product design, project management and risk management through product realization, traceability and on-time delivery.

“This important certification demonstrates our commitment to continuous improvement throughout our entire operation,” says Michelle Risius, quality manager at Aerospace Systems, a division of Nortech Systems located in Blue Earth, Minn. “We’re proud of our 40-year history providing mission-critical support to defense contractors and other OEMs.”

The Aerospace Systems division specializes in custom-designed wire harnesses and cable assemblies, including rugged high-speed data communications cables, flat molded, fiber optics, printed circuit board assemblies (PCBAs) and higher-level builds. Products are engineered to withstand severe environmental conditions including extreme heat and cold, salt spray, water immersion, chemical and abrasion resistance, and electromagnetic and radio frequency interference.

Nortech Systems Incorporated (www.nortechsys.com), based in Wayzata, Minn., is a full-service electronics manufacturing services (EMS) provider of wire and cable assemblies, printed circuit board assemblies and higher-level complete box build assemblies for a wide range of industries. Markets served include industrial equipment, aerospace/defense and medical. The company has manufacturing capabilities and operating partners in the U.S., Asia and Latin America. Nortech Systems, Inc. is traded on the NASDAQ Stock Market under the symbol NSYS.

Contact: Warren Djerf; Brookside Communications Group
952-920-3908 or warren@brookcomm.net