Sparton Corp (SPA) reported a small decrease in sales for the second quarter of fiscal 2011. In the midst of a dramatic turnaround, the company has focused on removing unprofitable contracts, leading to increased margins across the board.

Two new acquisitions should help boost the sales figure going forward and the backlog has increased for 5 consecutive quarters.

SPA nows sits on over $30m in net cash, and trades at an EV/EBIT of 5.8x using estimated 2011 numbers.