Patlex Corp. Reports a $667,000 Profit for Quarter

Patlex Corp., a Chatsworth laser company, reported a third-quarter profit of $667,000, or 11 cents a share, compared with a year-earlier loss of $815,400.

The turnaround came on a 92% surge in Patlex’s revenue in the quarter that ended Sept. 30, to $5.58 million from $2.9 million.

Patlex makes lasers and receives 64% of the licensing revenue generated from laser patents held by Gordon Gould, a laser pioneer. Patlex helped Gould secure most of the patents last year, and is getting higher royalties because more laser companies are signing licenses to use Gould’s technology.

For the first 9 months of 1988, Patlex earned $1.39 million, or 22 cents a share, whereas a year earlier it lost $1.98 million. The latest profit included a $630,000 one-time tax benefit. Nine-month revenue jumped to $16.2 million from $9.22 million.

Separately, Patlex said it plans to proceed with its previously announced plan to spin off its manufacturing operations into a company called Geotek Industries.

The plan calls for Patlex stockholders to receive three Geotek shares and three transferable rights to buy additional Geotek shares for each 12 Patlex shares they will own as of a date that has yet to be announced.

Patlex said it thinks the transaction justifies as a tax-free spinoff but would proceed with the plan regardless of whether the Internal Revenue Service agrees.