StarTel Attributes Loss to Product Development

StarTel Corp., an Irvine-based manufacturer of telephone marketing and answering systems, reported a net loss of $437,000 for the second quarter, compared with an $88,000 profit during the same period in 1986. Sales were $2.3 million, down 24% from $3 million a year ago.

For the first half of 1987, StarTel reported a loss of $1.2 million, compared with earnings of $152,000 a year earlier. Sales for the six months were $4.2 million, down 25% from $5.6 million in 1986.

StarTel said its losses reflect investments in new-product development, including a new line of telecommunication systems introduced in June. Research and development spending was $312,000 during the second quarter, an amount equal to 13% of the company’s sales for the period.