Datron Systems Expects Loss in 2nd Quarter

Datron Systems Inc., citing a delay in international orders for its radio communication products, said it expected a loss on substantially lower sales in its fiscal second quarter that will end Sept. 30.

For its fiscal second quarter a year ago, the Simi Valley-based provider of telecommunications and radio equipment and services posted a profit of $1.37 million on sales of $19.1 million.

But because of a delay in orders, along with a continuing decline in contracts from the Department of Defense, Datron projected its sales for its current second quarter to be between $12 million and $14 million. Datron attributed the delay in orders to “administrative matters at the customer level.”

As a result, Datron also said it expected a 10% to 15% decline in sales and lower net income for its full fiscal year that will end March 31, 1993, compared with a year ago, when Datron earned $3.46 million on sales of $73 million.

Investors reacted negatively to Datron’s news. On the day of the company’s announcement last Wednesday, its stock price plunged 20%, to $8.75 per share from $11 a share. Its stock closed Monday at $8 per share.