Applied Circuit Rebounds With Record Revenues

Boosted by new orders that helped it rebound from last year’s financial slump, Applied Circuit Technology Inc. of Anaheim announced record revenues of $505,485 for the third quarter of its 1985 fiscal year compared to a loss of $930,315 for the same period a year earlier. The gain for the period ended July 31 marked ACT’s second consecutive profitable quarter after a year of losses.

Revenues for the quarter were $5.6 million, more than three times the $1.7 million for the year-earlier period and 11% higher than the previous record of $5.1 million set in the second quarter of fiscal 1985.

For the first nine months of the fiscal year, ACT had net income of $69,333, compared to a loss of $538,526 for the same period in fiscal 1984. Revenues for the nine months were a record $13.5 million, up 44% from $9.3 million in the year-earlier period.

Walter R. Menetrey, ACT’s president, attributed the company’s profitable performance to several factors, including the acquisitions of Certel Inc. last November and Dumont Magnetic Technology earlier this year. The acquisitions allowed ACT to diversify into the floppy disk market.

Besides the addition of new products, Menetrey said ACT’s computer disk drive testing equipment is constantly upgraded to keep up with trends in the industry, including a need for improved testing efficiency. In the last 18 weeks, ACT has received $11.5 million in orders from its two major customers, IBM and Seagate Technology of Scotts Valley, in Northern California. In addition, Menetrey said, the company has received orders from several major new customers. He declined to reveal details of the agreements.