SFE Technologies Losses Grow in 4th Quarter

SFE Technologies, a San Fernando electronics firm, reported its losses widened to $8.8 million in the fiscal fourth quarter that ended Oct. 28 from a $3-million loss a year earlier. Revenues fell 20% to $7 million from $8.8 million.

The loss in the latest period included a $7-million charge to provide for a writedown for excess and obsolete inventory. SFE Chairman William Kuehn, who joined the company in November, said SFE is repositioning itself from mass markets for electronic components to manufacturing more specialized electronic components for use by the military and private industry.

For the year that ended Oct. 28, SFE said it lost $9.7 million, compared to a $4.3-million loss in fiscal 1988. Revenues were $30.4 million, down 16% from $36.2 million.

Separately, Kuehn said SFE’s West-Cap Arizona subsidiary negotiated a plea agreement with the U.S. Department of Justice. West-Cap agreed to plead guilty to two counts involving violations of quality control testing and reporting procedures for electronic components West-Cap manufactured for the military.

The maximum penalty West-Cap faces is a $10,000 fine per count, which may be increased to $50,000, plus restitution, Kuehn said. He expects the West-Cap matter to be resolved by June.