2 Discontinued Units Blamed for NTS Losses

National Technical Systems blamed two discontinued units, soil-testing and products, for the company’s net loss of $500,000, or 13 cents a share, in its second quarter ended July 31. During the same period a year earlier, NTS posted net income of $22,000, or 1 cent a share.

The Calabasas-based company, which performs testing services, primarily for the defense and aerospace industries, reported quarterly sales of $6.6 million, up 19% from a year before.

NTS sold its San Ramon soil-testing division in June and shut down its NTS Products unit in Chatsworth in July. In the quarter, the two discontinued units together lost $567,000, or 15 cents a share, on sales of $146,000.

For the six months ended July 31, NTS reported a net loss of $652,000, or 17 cents a share, contrasted with net income of $192,000, or 5 cents a share, a year before. Overall sales were $12.2 million, up 8%. The two discontinued units lost $761,000, or 20 cents a share, on sales of $466,000 for the period.

The soil-testing unit, which employed five, was sold to EQE Inc. of San Francisco. NTS Products, which employed seven, made a sound-activated switch for lights and appliances. NTS licensed an Ohio firm to make and market the product.