Resdel Reports a $5.1-Million Loss in Quarter on 72% Revenue Drop

In another sign of mounting financial problems, Resdel Industries on Friday reported a $5.1-million loss on a 72% decline in revenue for its latest quarter.

Newport Beach-based Resdel Industries blamed the drastic sales decline on “contract overruns” at its Resdel Engineering Corp. subsidiary in Arcadia. Resdel Engineering makes electronics equipment for military applications, including systems for electronic and anti-submarine warfare.

Disclosure of the large loss and contract overruns came one day after Stanley K. Weissberg resigned as president of Resdel Engineering. He was replaced by Franz L. Worth.

Resdel said Weissberg resigned to “pursue other personal interests.”

Resdel’s $5.1-million loss for the quarter ended Dec. 31 compares to a loss of $1.2 million during the same period a year earlier.

Sales fell to $1.9 million, compared with $6.7 million for the year-earlier quarter.

For the latest 6 months, Resdel has lost $6.4 million, compared with a year-ago loss of $1.2 million. Sales are down 34% to $7 million, from $10.6 million.

Resdel lost $8.3 million for the year ended June 30.