Sales Slump Forces More Layoffs at EIP Microwave

Blaming slack sales, EIP Microwave Inc. of Newport Beach said it is trimming its payroll for the second time in as many years--this time laying off 17 of its 190 workers, all from its main manufacturing facility in San Jose.

The layoffs were effective Friday.

Weak demand for the company’s microwave test and measurement instruments is forcing management to cut production and lay off the workers, said Richard Certo, EIP Microwave’s chief financial officer.

At the same time, Certo said, the company is investing “heavily” on developing a new microwave test product. He declined further comment.

Certo said the company probably will post lower sales for its fiscal 1986, which ends later this month. It would be EIP’s second consecutive annual loss.

Profits and revenue for the first nine months of EIP’s fiscal year were down from the year-earlier period. Net income fell 68.5%--to $234,000 from $743,000, while revenue dropped 5.2% to $14.6 million from $15.4 million.

EIP employment was at an all-time high of 230 workers in June, 1985, when the company laid off 30 employees at its San Jose facility. The company blamed anemic sales for those payroll cuts.

Employment at the company’s Newport Beach headquarters has not been affected by either round of layoffs.