Revenue during the quarter dropped 3.75 percent to $5.44 million from $5.65 million in the previous year period. Gross margin for the quarter expanded 186 basis points over the previous year period to 27.95 percent. Total expenses were 93.20 percent of quarterly revenues, up from 92.46 percent for the same period last year. That has resulted in a contraction of 74 basis points in operating margin to 6.80 percent.

Operating income for the quarter was $0.37 million, compared with $0.43 million in the previous year period.

“Results for the quarter were mixed. The modest decline in net sales and the additional expenses related to the relocation of equipment in both China and Myanmar were partially offset by the operational benefits derived from utilization of our Myanmar operations. Once the previously announced component manufacturing in Myanmar fully comes on stream, the benefits should outstrip the costs we are currently incurring. Results for the quarter were further impacted by a previously announced strategic decision to phase out certain, low-margin business despite our focus on higher-margin business and customer price increases. We continue to focus on organic growth and on new business opportunities to offset this strategic reduction of lower margin sales, and remain hopeful about anticipated positive contributions to our operations in the future,” said Roland Kohl, chairman, president and chief executive officer.