Electronics Firm Reports 4th-Quarter Profits Up 19%

HCC Industries, an Encino maker of precision electronic components, Monday reported fourth-quarter profits up 19%, despite a yearlong 9% decline in earnings caused by a one-time loss stemming from HCC’s repurchase of some outstanding debt.

For the quarter ended March 30, the company said, earnings were $534,000, or 30 cents a share, on sales of $9.7 million. In the first quarter of 1984, ended March 31, the earnings were $449,000, or 24 cents a share, on sales of $9.4 million.

Although profits were off on the year, sales were up sharply during that period. For 1985, the company earned $1 million, or 57 cents a share, on sales of $37.7 million. For the previous fiscal year, earnings were $1.1 million, or 60 cents a share, on sales of $30.2 million.

During the just-ended fiscal year the company sustained an extraordinary after-tax loss of $326,000 on the repurchase of some of its outstanding subordinated debentures, a type of bond. That cost HCC 18 cents a share in earnings, the company said.

HCC Industries primarily makes hermetically sealed connection devices. Many of its products are for the military.

“Sales and earnings in the fourth quarter were very strong and met our forecasted plan,” chairman Jack Goldfarb said. “The hermetic-sealing business contributed strongly to the fourth-quarter sales and earnings. This was somewhat offset by a downturn in revenues and profits at Merrimacks Magnetic Corp. (a subsidiary), as a result of considerable market weakness in the computer industries that it serves.”

Vector Graphic Improves Loss Picture in 3rd Quarter

Vector Graphic Inc., a Thousand Oaks maker of microcomputers, reported sharply lower losses--accompanied by even lower sales--for the third quarter ended April 2.

The company reported a net loss of $1.5 million, or 19 cents a share, contrasted with a loss of $2.8 million, or 44 cents a share, for the same quarter a year ago.

But sales totaled only $900,000 for the quarter, contrasted with $3.1 million for the quarter a year ago. Sales were down for the eighth straight quarter, the company said.

Net sales for the nine-month period ended April 2 were $4.3 million, down from $12.4 million for the comparable period a year ago. The net loss for the nine-month period amounted to $5 million, or 64 cents a share, contrasted with $5.3 million, or 89 cents a share, in the prior period.

Roger Lee, the company’s vice president for finance, blamed Vector’s troubles on “stiff competition.”

He said Vector, which has agreed in principle to merge with Dual Systems Control Corp. of Berkeley, reduced its losses by cutting costs.