Cites Loss in Boeing Lawsuit for Revision : Sierracin Doubles 2nd-Quarter Deficit

Sierracin Corp. announced Tuesday that its second-quarter loss was $715,000--nearly 2 1/2 times the amount that it originally reported--as a result of losing a lawsuit with Boeing Co.

The Sylmar-based aerospace and electronics company also said that the enlarged loss put it in violation of agreements covering $13 million in loans with its two principal banks. Sierracin said, however, that it had reached agreements with the banks that would give the company time to improve its financial standing and restructure its debt.

“It will make us scramble for six to 10 weeks, but I see no reason why we can’t arrange for alternate sources of financing,” said Gary Patten, a Sierracin vice president for finance.

The judgment against Sierracin stemmed from a complicated legal dispute with Boeing over the Sylmar company’s production of cockpit windows. Last month, a county judge in Seattle awarded Boeing $3.3 million in damages from Sierracin and a joint-venture partner after a jury found that the defendants used Boeing designs to make windows for other aircraft manufacturers.

Sierracin and its partner, Sierracin Glass Transparencies, in turn won a judgment of $2.1 million on their claim that Boeing was guilty of antitrust violations by monopolizing part of the cockpit window business.

The two damage awards ultimately translated into an increase in Sierracin’s loss to $715,000 from $289,000 on revenue of $19.2 million during the second quarter ended June 30.

During the same quarter last year, Sierracin reported a profit of $1 million on revenue of $21.1 million.

Sierracin, which has been beset by dissension among shareholders and hurt by the downturn in the electronics industry, plans to appeal the Boeing case.