Quarter Net Drops 60% for Systonetics

The high cost of doubling staff in anticipation of upcoming orders for special software systems severely depressed earnings at Systonetics Inc., which reported a drop of 60.8% in third-quarter earnings and a 99% plunge in net income for the first nine months of fiscal 1984.

For the third quarter, ended Nov. 30, the Fullerton-based manufacturer of management software systems reported earnings of $95,663, down from income of $244,086 in the year-ago quarter. Revenues during the quarter were $2.3 million, about $3,500 less than during the 1983 quarter.

In the nine-month period, Systonetics reported income of $6,800, compared to $291,500 during the same 1983 period. At the same time, sales remained flat at $5.6 million for the first nine months of both 1983 and 1984.

Systonetics nearly doubled its staff in 1984 to more than 100 employees from 60 workers, said Dave Larsen, chief financial officer. “We’re anticipating large orders within the next six months and are gearing up for that,” he said.