Lawsuit Dims Firm’s Rising Profit Report : Litigation: Pacific Scientific is named as co-defendant in a claim seeking $77 million. The company says the matter is without merit.

News of surging sales and profits at Pacific Scientific Co. was dimmed a bit Monday as company officials said the electrical equipment maker has been named co-defendant in a $77 million lawsuit.

The suit, filed in a federal district court in Texas, alleges breach of contract in connection with the 1990 sale of a product line.

The suit stemmed from the sale of $200,000 in spare inventory to a small Texas company. The complaint seeks $7 million in actual damages and $70 million in punitive damages. In 1991, Pacific Scientific sold the unit that had produced the line of measuring equipment. The new owner also is named in the suit.

Pacific Scientific executives said that the suit is without merit and that they’ve asked the court to dismiss the litigation. “The company will vigorously defend itself against this action,” spokesman Richard V. Plat said.

Also on Monday, Pacific Scientific reported strong sales and earnings increases for its second fiscal quarter, which ended July 1.

Quarterly profit rose 37% to $2.2 million, up from $1.6 million, on revenue that rose 15% to $57.2 million, up from $49.9 million.

For the first half, Pacific Scientific said its profit increased 39% to $3.9 million from $2.8 million. Six-month sales of $108.8 million were up 19% from $91.3 million for the same period a year earlier.

Edgar S. Brower, Pacific Scientific’s chairman and chief executive, said additional strong quarters are anticipated because “orders continued to outpace shipments.”

The company, based in Newport Beach, designs, manufactures and markets electrical equipment and safety equipment.