Postal Equipment Maker Posts Rare Profit in Second Quarter

Micro General Corp. posted net income of $34,709 for the second quarter of its fiscal year--only the fourth quarterly profit for the company since its reorganization in 1981.

In the comparable quarter in fiscal 1985, the Irvine maker of computerized postal scales and automated shipping systems recorded a $144,384 net loss. Revenue for the period ended June 29 was $1.3 million, compared to $1.1 million a year ago.

For the first half, net income was $6,234, compared with a year-earlier loss of $78,443. Revenue rose to $2.5 million from $2.1 million.

Terry R. Kees, Micro General’s chief financial officer, said the gain for the most recent quarter came from sales of its parcel shipping system and from savings realized in a nine-month program of production cost reductions. Kees said he is “cautiously optimistic” that the company will be able to maintain profits in coming periods.

Micro General made educational learning products until 1981, when it sold that line and bought CODA Enterprises Inc., an Orange County postal equipment maker. The company then changed its name to Micro General from Mudulearn, Kees said.

The company has lost nearly $1.8 million since 1981. For 1983, the only profitable year since the reorganization, Micro General posted net income of $906.

During that year, the company posted two quarterly profits, which were attributed to contracts awarded by the U.S. Postal Service, Kees said.

The company’s only other quarterly profit--posted for the first quarter of fiscal 1985--was attributed to the increase in first-class postage from 20 cents to 22 cents. Micro General turned a profit then because of revenue derived from service calls as technicians updated all of the company’s scales and systems, Kees said.