American Businessphones Reports Earnings Up 83%

Citing increased sales, American Businessphones Inc. of Irvine reported record net earnings of $326,000 for its fiscal 1987 third-quarter, up 83% from $178,000 a year earlier.

For the period ended March 31, the company, which sells, installs and maintains telephone equipment for businesses, had revenue of $7 million, 14% higher than the $6.1 million posted the prior year.

For the first nine months, American Businessphones’s earning totaled $773,000, up 90% from $405,000 posted a year ago. Nine-month revenue totaled $20 million, an increase of 14% over last year’s $17.5 million.

Frank J. Feitz, president and chairman, attributed the higher sales and earnings to increased sales of larger phone systems with bigger profit margins. As the company’s client base has grown, repeat customers also have purchased equipment to add to existing systems, a company spokesperson said.

At the same time, American Business phones has added salespeople and now has an outside sales staff of about 95, said Darlene Lynch, marketing director.