MSI Data Reports Earnings Up in 1st Quarter; Expects Drop This Period

MSI Data Corp. reported a 60% jump in earnings for its first quarter ended June 25 but said it expects a substantial drop in earnings for the current quarter.

The Costa Mesa-based manufacturer of hand-held data terminals said its first-quarter earnings were $1.3 million, up from $805,000 in the year-earlier period. Revenues rose 6% to $21.8 million, from $20.5 million.

In a statement, MSI said the outlook for the current quarter, which ends Sept. 24, indicates a “strong likelihood” that revenues will fall below last year’s second-quarter performance and that earnings will be “substantially below” year-ago results.

The company said revenues are likely to be lower this quarter because a year ago the company made large shipments to three major customers. Similar large shipments are not expected in the current quarter.

MSI said earnings will drop this quarter because of lower production rates, legal expenses involving ongoing patent litigation and a planned increase in the firm’s marketing and sales budgets.