Sym-Tek Posts Record Profits

Benefiting from improved profit margins and billing collections, Sym-Tek Systems on Tuesday reported record earnings and sales for the year ended March 31.

Net income increased 106% for the year to $1.6 million on sales of $35.7 million, which were up 78%. For the fourth quarter, earnings increased 112% to $601,000 while sales rose 52% to $10.7 million.

With a year-end backlog of $9.1 million and prospects of continued new orders, Sym-Tek will “maintain its leadership position” in fiscal 1986, according to company President Ray Twigg. Sym-Tek makes semiconductor testing equipment.

Sym-Tek officials are attempting to partially offset the slowdown in the semiconductor industry with a series of management controls developed over the past two years.

Pretax profit margins have improved in the past 20 months to nearly 11% from 7.4%, according to Ronald G. Sidorchuk, vice president of finance.

In addition, Sym-Tek has trimmed the average collection time on its receivables during that time to 66 days from 99 days and reduced the average inventory supply to 148 days from 224 days.

The management control programs have “started to kick in,” said Sidorchuk. “They have given us some room and some renewed hope.”

Sym-Tek’s work force has expanded in the past year to 375 from 300, he said.