Airshow, a Tustin Supplier of In-Flight TV, Will Be Sold

Dynatech Corp., a diversified electronics company that concluded an $848-million management buyout in May, plans to spin off profitable businesses, including its growing Airshow Inc. unit in Tustin, as early as next year, Chairman John F. Reno said Thursday.

Airshow, founded in 1980, is the leading supplier of in-flight television and entertainment systems to the burgeoning executive-jet market, Reno said.

While there is no timetable for spinning off its businesses, Dynatech would like to try the Airshow divestiture next year because demand for executive jets, as well as entertainment systems for refurbished jets, is strong, Reno said.

The Tustin unit is “very profitable,” and is expected to generate about $60 million in revenue in the fiscal year ending March 31, he said.

Another business that’s doing well is Itronix Corp. of Spokane, Wash., the No. 3 provider of industrial-strength computers to professionals, Reno said. Demand is strong from telephone companies, which send technicians out with computers that must work with test and measurement instruments that Burlington, Mass.-based Dynatech also makes. Test and measurement instruments account for more than half of the company’s revenue.

Overall, Dynatech is performing more profitably than when it announced a year ago that Clayton, Dubilier & Rice, a New York investment firm, would underwrite the management buyout, Reno said.

Revenue for the fiscal year will be “approaching $485 million, possibly more” compared with $473 million in fiscal 1998. Earnings before interest, taxes, depreciation and amortization will be from $95 million to $100 million,” compared with estimates of $90 million.