EIP Microwave Inc. Sees 2nd Quarter Profit Drop

Blaming a persistently soft market, EIP Microwave Inc. of Newport Beach said its fiscal 1987 second-quarter profits plummeted 61% to $50,000 from $129,000 a year ago. Sales for the period ended March 31 were $4.8 million, down 9% from the $5.3 million posted last year.

For the first six months of its fiscal year, EIP had profits of $142,000, down 30% from the $204,000 recorded last year. Sales for the period were $10.4 million, up 10% from the $9.9 million posted a year ago.

In addition to the market’s softness, the company said sales of its microwave test equipment were down because it completed a major government contract and had not yet replaced that source of revenue.

The company said the continuing slow sales in its primary microwave test market has driven it to attempt a diversification into another microwave instrumentation market. The company declined to reveal the product, but said it would be introduced later this fiscal year.