Two Major Deals Push Systonetics Into Black

Systonetics Inc., a Fullerton software publisher, reported that two large sales in the final quarter of its fiscal year, ended Feb. 28, pushed revenues up to a record $3.3 million and generated all of the company’s pretax profits of $650,000 for the fiscal year.

The company also reported that it has been slapped with an $800,000 lawsuit last month from a dissatisfied customer. The suit, filed Pittsburgh-based PPG, seeks the return of fees it paid for a custom-made software system from Systonetics in June, 1982. On the same day, Systonetics has sued PPG, a diversified manufacturer, for the $400,000 it still owes on the sale.

David Larsen, Systonetics’ chief financial officer, said the two companies are trying to negotiate an out-of-court settlement and that Systonetics has not established provisions for any potential recovery or losses from a possible settlement.

Pretax profits for the 1985 fiscal year were $650,000, 25% below the $868,000 in pretax earnings reported a year ago. Larsen said after-tax figures are not yet available. Audited financial results for the final quarter and entire fiscal year are expected by the end of the month. Sales for the fiscal year were of $8.8 million, a 14% increase over the $7.7 million recorded the year earlier.

Real Estate Sales Boost Net for Eldorado Bancorp

Eldorado Bancorp, the Tustin-based holding company for Eldorado Bank, reported earnings in the first quarter increased nearly 43% to $307,000, from $215,000 in the period a year ago. Bank officials attributed the gain in part to the sale of repossessed residential real estate. Roy Trachsel, controller, said the bank has also reduced non-performing loans and lowered its expenses. Total assets for the seven-branch bank were $171.9 million on March 31, up from $166.4 million a year earlier.

Quarter Profits Decline for Instrument-Maker Datum

Datum Inc., an Anaheim-based manufacturer of precision instruments, earned $240,000 in the first quarter of 1985, a 23% drop from net income of $310,000 in the period a year ago. Revenues were ahead to $4.4 million, from $4.3 million.

“The company’s modest earnings decline is fully attributable to increases in investment for marketing and product development and to a decrease in interest income from invested capital,” said Datum President Louis B. Horwitz in a prepared statement. Horwitz added that, contrary to company expectations, revenues for the quarter did not increase enough to offset the added expenditures.