Powertec Earnings Flat Despite Sales Rise

Powertec said its earnings were flat in the second quarter ended May 4, despite a 33% increase in sales.

The Chatsworth-based firm, which makes power supplies used in computer and telecommunications equipment, reported net income of $623,000, or 23 cents a share, on sales of $7.6 million. Powertec earned the same amount a year earlier on sales of $5.7 million.

Powertec said its sales were up because of its acquisition last fall of Semiconductor Circuits of Windham, N. H.

But President Emmett H. Bradley said earnings were hurt by losses at Semiconductor Circuits and by the continued softness in the electronics industry. He said Semiconductor Circuits is expected to be profitable this quarter, mainly because of steps taken last fall such as combining two plants in New Hampshire and raising prices for the subsidiary’s products.

For the six months ended May 4, Powertec’s earnings were off 12%, to $1.1 million, or 39 cents a share. Sales increased 26%, to $14 million.