EIP Microwave Reports 59% Drop in Earnings
EIP Microwave Inc. said Monday that net earnings for its second fiscal quarter fell 59% to $129,000 from net earnings of $319,000 during the corresponding period last year. For the six months ended March 28, the Newport Beach maker of electronic test equipment said net earnings plunged 71% to $204,000 from $721,000 a year earlier.
Company officials said the sharp decrease in net earnings resulted primarily from heavy shipments under a long-term Defense Department order for which EIP was forced to lower its profit margin to maintain a competitive price. The order, booked in 1984, will be filled by the end of the year, officials said.
Revenues during the second quarter were flat, $5.3 million compared with $5.3 million a year ago. For the first half of 1986, revenues dipped 4% to $9.9 million from $10.3 million in 1985.
Despite soft sales during the first half, EIP’s backlog of orders more than doubled to $9.9 million at the end of the quarter from last year’s $4.8 million, said Mark Howlett, vice chairman. As a result, he said, “we’ll have a strong second half and improved sales and earnings for 1986.”