Irvine Sensors Blames Defense Spending Delays for Losses

Irvine Sensors Corp. said losses for its second fiscal quarter, which ended March 30, hit $292,000, contrasted with net earnings of $9,500 a year earlier. The defense electronics maker said its revenues fell 21% to $943,900 from $1.2 million.

And for the first half of the fiscal year, the company’s net loss totaled $1.1 million, nearly ten-fold its net loss of $116,800 during the first half of fiscal 1985. Revenues during the six months fell 40% to $1.2 million, from $2 million a year earlier.

Delays in defense spending resulting from wrangling over the federal budget were to blame for the revenue shortfalls and resulting losses, especially in the first quarter, said John Stuart, the company’s chief financial officer. Because Irvine Sensors is dependent on federal spending, 1986 funding delays and budget cuts have wreaked havoc on the company, he said.

A near-term recovery for Irvine Sensors “depends very heavily on the timing of procurement activities for the rest of the fiscal year,” Stuart said.

“We just don’t know until a little more time has passed,” Stuart said. “It’s a little depressing that you are halfway through the fiscal year without the government having a good handle on how it’s spending its money.”