EIP Microwave Posts Loss, Says President Resigned

EIP Microwave, a Newport Beach technology firm, reported a $560,000 quarterly loss Monday and said its continuing problems have resulted in the resignation of company president Jeffrey B. Bryant.

“It was mutually agreed that (Bryant’s resignation) was the best move for the company,” said EIP Chairman John F. Bishop, who has assumed the additional title of president.

In another management change, the company named Robert W. Austin as vice president, general manager and chief operating officer. Austin has been the company’s vice president of operations.

EIP manufactures microwave test and measurement devices for the defense and telecommunications industries.

EIP lost $560,000 in the third quarter ended June 30; it had earnings of $62,000 in the same period a year earlier.

The company lost $442,000 in the second quarter and $729,000 in the first quarter, producing a combined deficit of $1.7 million for the first nine months of its 1988 fiscal year.

Third-quarter revenues dropped 39%, to $2.8 million from $4.7 million a year ago. For the nine-month period, EIP’s revenues fell 48%, to $7.9 million.

Earlier this year, EIP was suspended for four months from receiving new Pentagon contracts after the federal government accused the company of making illegal overseas sales of high-technology equipment in 1984 and 1985.

“That really depressed our sales volume,” Bishop said. “It was very damaging.”

EIP settled the suit, and the Justice Department dropped three felony counts against the firm. EIP pleaded guilty to a misdemeanor violation, paying a $1,000 fine and the government’s investigation costs of $28,000.

The company said that the outlook for its current product lines “will continue steady for the foreseeable future” and that “there are prospects for significant government contracts” in 1988.