Datametrics’ Profits Slip 37% in 1st Quarter

Citing increased production costs to handle larger volume, Datametrics reported 37% lower net income on 19% higher revenue for its first quarter ended Jan. 31.

The Chatsworth maker of computer printers and peripherals for the military earned $279,000, or 5 cents a share fully diluted, on revenue of $5.1 million. A year ago it earned $443,000, or 13 cents, on revenue of $4.3 million.

Chairman Garland S. White said the increased revenue was mainly from new product shipments and up-front engineering payments on several major new contracts. He said the lower earnings were due to the company’s efforts to tool up to handle its record $31.8-million order backlog.

Datametrics also said it has a new, $2-million line of credit with Union Bank of Los Angeles to provide increased working capital. Datametrics’ chief financial officer Russell E. Quinn said borrowings under the new line are available until next Feb. 27. The agreement increases the company’s borrowing power from about $800,000 under its previous credit line with another bank, he said.

Quinn said the credit line will be at the prime rate plus 1.75%, and will be secured by Datametrics’ assets.