Nortech Systems Reports Second Quarter Results

MINNEAPOLIS – Aug. 8, 2012 – Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $28.0 million for the second quarter ended June 30, 2012, compared with net sales of $27.8 million for the second quarter of 2011. Operating income for the second quarter of 2012 was $319,000, compared with $339,000 for the second quarter of 2011.

The company reported net income of $126,000, or $0.05 per diluted common share for the second quarter of 2012, compared with $146,000, or $0.05 per diluted common share, for the second quarter of 2011.

For the six months ended June 30, 2012, Nortech Systems reported net sales of $56.4 million, compared with $56.8 million for the same period in 2011. Operating income for the first six months of 2012 was $647,000, compared with $626,000 for the same period in 2011.

Net income for the six-month period ended June 30, 2012, was $249,000, or $0.09 per diluted common share. This compares with net income of $264,000, or $0.08 per diluted common share, reported for the same period in 2011, before a non-operating gain related to its latest acquisition. With the non-operating gain, the company reported net income of $772,000, or $0.28 per diluted common share, for the first six months of 2011.

“Our revenue results show stability while facing ongoing economic headwinds,” said Mike Degen, Nortech Systems’ president & CEO. Analysts covering the EMS industry have described the 2012 outlook as “uncertain” and “lacking direction”, without any clear, industry-defining trends. Growth forecasts are mixed, echoing the diverse signals Nortech Systems is receiving from its broad customer base.

“In the short-term, however, we’re carrying excess capacity that impacts our profitability,” Degen stated. “Strategically, we’ve positioned ourselves for long-term growth through synergistic acquisitions and efficiency improvements.” He added that Nortech remains committed to executing business fundamentals and leveraging its resources prudently in light of customer demand.

Conference Call
Nortech Systems announces a conference call to be held at 10:00 a.m. (CDT) on Thurs., Aug. 9, to discuss the company’s second 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 or at A podcast (MP3 download) will also be available. The telephone replay will be available through Aug. 23, 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 398139 are both required.

About Nortech Systems Incorporated
Nortech Systems Incorporated (, 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.

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.

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Contact:  Richard Wasielewski                                                                                    Nortech Systems Incorporated (952) 345-2244
Warren Djerf
Brookside Communications Group (952) 920-3908