TeleQuest Reports Net Loss of $306,000

TeleQuest reported a $306,000 net loss and a 65% increase in revenue to $6.7 million for the first quarter ended March 31. The San Diego-based telephone manufacturer reported $9,000 in net income for the same quarter a year ago.

The company linked the loss to “a reduction of inventory value and an increase in inventory reserves made in recognition of severely competitive market conditions which are expected to continue.”

TeleQuest’s inventory adjustments boosted expenses by $500,000 during the first quarter, according to Chairman and Chief Executive H. Marcheschi.