Net Income Drops for American Businessphones

Irvine-based American Businessphones Inc. said Tuesday that net income dropped 23% in its first fiscal quarter ended Sept. 30, while revenue increased 69%.

For the three months, net income was $46,937, compared with $195,374 during the same period a year earlier. Revenues for the quarter rose to $4.8 million from $3.3 million in the like period a year ago.

Dana Karcher, chief operating officer for American Businessphones, attributed the revenue increase to the opening of five retail centers in the past year, expanding the sales operation to nine centers. The drop in net income was due in part to the expense of opening the new stores, the company said.

Frank J. Feitz, company president and chairman, said that he was pleased with the first quarter figures, adding that an additional sales and maintenance center was opened during the first quarter in San Bernardino to support anticipated future growth. American Businessphones will expand outside of the state with offices opening in Phoenix and Dallas in the second quarter.