Pacific Scientific Stock Falls Amid Poor Results

Pacific Scientific Co. stock fell 15% after the company said it will restructure its Solium fluorescent lighting unit and take a $4.5-million charge in the second quarter. The electrical and safety equipment maker said that the charge, amounting to 36 cents a share, and the unit’s loss will force the company to report a loss of about 32 cents a share in the second quarter.

“Solium has not met our expectations,” said Richard Plat, executive vice president of Pacific Scientific. “We’re not making any sales projections now.” Two years ago, the company projected that the unit, which is based in Randolph, Mass., could have 1996 sales of $100 million. For the first six months of the year, Solium sales were $1.3 million.

“One of the severe mistakes we made was making any kind of projections until we thoroughly understood our product and how it would be accepted in the marketplace,” said Edgar Brower, president and chief executive officer. “I guess we were seduced by the size of the marketplace.”

The company’s stock fell $2.375 per share to close at $14.