Datron Systems reported 35% lower earnings and 6% lower sales for its first quarter ended June 30, attributing the poor showing mostly to the costs for a new headquarters building and lower interest income.
The Simi Valley-based maker of high-tech communications systems announced earnings of $250,000, or 10 cents a share, on sales of $4.1 million, down from earnings of $385,000, or 18 cents a share, on sales of $4.3 million for the same quarter a year ago.
The company said the per-share earnings were diluted by an 18% increase in shares outstanding, caused by its recent public offering.
David Derby, the company's president, said he expects Datron's performance to improve soon. "The rate of new orders, including funded and unfunded contracts, is increasing, and the outlook is for improving results for the remainder of the fiscal year," he said.