Hurt by delays in shipments of a new line of products, Xscribe reported a loss of $997,000 on sales of $7.9 million for the second quarter ended Sept. 30. Over the same period the previous year, the company recored a profit of $642,000 on sales of $8.9 million.
Software “bugs” in Xscribe’s new Magnum line of computer-aided transcription devices caused the company to hold delivery of the systems to customers, Chief Financial Officer Donald Quackenbush said Wednesday. Those bugs or problems “are very close to being worked out,” he said.
Also contributing to the second-quarter loss was a $300,000 termination settlement paid by Xscribe to former President Thomas Delahanty, who resigned in August.
For the six months ended Sept. 30, Xscribe reported a loss of $1.8 million on revenue of $15.1 million, contrasted with a profit of $1.2 million on sales of $17 million over the same two quarters last year. Xscribe’s products are sold to the court reporting industry and to law firms.
Xscribe stock closed unchanged at $2 a share in over-the-counter trading Wednesday.