Micom Systems said Monday its earnings rose 5% to $2.8 million in the second quarter ended Sept. 30 from a year earlier. The results mark the first time in nearly two years that the Simi Valley maker of computer communications equipment has posted a quarterly profit increase.
Raymond Thomas, Micom's chief financial officer, attributed the rise in earnings to ongoing cost controls that include cutting back on travel costs and limited hiring of new employees.
Thomas also cited the company's 2% increase in sales in the quarter, to $48.1 million from $47.1 million a year earlier. Despite the improved quarterly earnings, he said, the market for Micom's products remains soft.
Micom had previously reported lower profits in each of the past six quarters, caused largely by the computer industry slump. The last earnings increase the company posted was for the quarter ended Dec. 31, 1984. In the year ended last March 31, Micom's net income plunged 58% to $10.8 million on a 2% drop in sales to $189.5 million.
For the six months, Micom's earnings were down 11.5% to $4.5 million from a year earlier, with sales rising less than 1% to $94.2 million.