Perceptronics Blames Loss on Inability to Cut Costs

Perceptronics posted a fiscal third-quarter loss of $2.35 million and said it also expects to report losses for the fourth quarter and the full year.

The Woodland Hills company, which makes simulators and other training equipment for the military, said its loss in the quarter that ended Dec. 31 contrasted with year-earlier net income of $362,173. The company’s revenue fell 27% to $8.63 million from $11.8 million.

Perceptronics blamed the red ink largely on its inability to cut costs as quickly as its sales declined. Perceptronics said the projected loss for the year means that the company expects to be “technically out of compliance” with the terms of its convertible bonds and therefore is negotiating with its lenders about the debt’s status.

For the first nine months of its fiscal year, Perceptronics lost $2.51 million on revenue of $22.5 million. A year earlier, the company earned $1.38 million on revenue of $41.1 million.