TeleQuest Reports Loss of $1.2 Million in Quarter

TeleQuest, which continues to face a soft domestic market for its residential and commercial telephone products, reported a net loss of $1.2 million and revenue that fell 46% during the second quarter ended June 30.

For the first half, TeleQuest reported a net loss of $1.4 million and revenue that rose 5% to $9.3 million. The company reported a net loss of $67,000 during the first half of 1986.

The company added about $460,000 to its inventory reserves during the second quarter in response to continuing soft demand.

“A lot of telephone (manufacturers) are moving products, but the margins just aren’t there,” one industry observer said.

Domestic telephone sales continue to be soft, but TeleQuest’s international operations, which represent about 12% of its revenue, “are going strong,” according to company spokesman Eric Geis. During the second quarter, the company announced two major distribution deals in Canada that are valued at about $3 million.