Acquisition Blamed : Resdel Industries Expects to Post Substantial Losses

Resdel Industries, a Newport Beach electronics company, said Tuesday that it expects to report “substantial overall losses” for its fiscal year ending June 30. The company blamed the losses primarily on a recently acquired telecommunications subsidiary.

Resdel also revealed that it is experiencing “significant cash-flow problems.” The company attributed its cash-flow woes to an inability to increase bank borrowing, higher inventory costs and losses at the Sanbar Corp. subsidiary it acquired last September.

The firm did not say how much money it expects to lose for the year. But it said the loss will include a $1.4-million write-off of proceeds from the sale of Sanbar’s telephone repair business in Texas.

Although the company said its largest operating unit, Resdel Engineering, is expected to be profitable, it has hired a consulting firm to “assist in implementing (a) turnaround program.”

For the nine months ended March 31, Resdel reported a loss of $288,000, contrasted with a year-earlier profit of $1.4 million. Revenues increased 46% to $18.4 million.

Resdel Industries is the parent company of three subsidiaries, Resdel Engineering, Sanbar and Resdel Electro-Optics Systems Inc.

Resdel Engineering is a supplier of high-frequency, microwave and digital equipment, primarily for the military. Sanbar supplies telephone equipment and digital microwave communication systems. Resdel Electro-Optics develops laser technology for the military.