SFE Profits by Buying Back Note at Discount

SFE Technologies reported a quarterly profit for the first time in three years, although the reason was due entirely to an extraordinary credit to earnings because the San Fernando electronics concern cut its debt by buying back a note at a discount.

Separately, SFE named Michael A. Rosenberg--its vice president of technology--as president and chief operating officer. Alan D. Rubendall, who was president, remains chairman and chief executive.

SFE said it earned $171,000, or 3 cents a share, in the second quarter that ended April 30, compared to a loss of $971,000 a year earlier. Sales fell 8% in the quarter to $9.4 million.

The profit was caused by a $683,000 credit to earnings that stems from the repurchase by SFE of a $1.2-million note for about $500,000 from the city of South Tucson, Ariz. The note was issued in connection with the expansion of an SFE plant as part of a city development program.

For the six months, SFE reported a loss of $49,000, compared to a loss of $3 million a year earlier. Sales fell 5% to $18.2 million.