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Inrad Optics revenue hit by cuts in defense spending

Staff writer ▼ | August 20, 2013
Inrad Optics reported its consolidated financial results for its second quarter and six months ended June 30, 2013. Revenue was $2.7 million, down 6.4% from $2.9 million in the same period last year.
Inrad Optics
Inrad OpticsInrad Optics reported its consolidated financial results for its second quarter and six months ended June 30, 2013. Revenue was $2.7 million, down 6.4% from $2.9 million in the same period last year.


For the six months ended June 30, 2013, revenue of $5.8 million was up slightly compared to $5.7 million for the comparable period last year.

Orders were $2.7 million and $4.8 million for the three and six months ending June 30, 2013, down 19.3% and 23.8% compared to the respective periods last year. Orders from longtime aerospace and defense customers continued to decline, and were off a total of 15% as compared to the same period in 2012.

Gross profit for the second quarter was $308,000 or 11.4% of sales, down from $567,000 or 19.7% in the comparable quarter last year. For the six months ended June 30, 2013, gross profit decreased to $1 million or 17.4% of sales compared to $1.3 million or 22.9% in 2012. The 2013 decrease in gross profit margin primarily reflects a less profitable sales mix compared to 2012 as well as the impact of the company's relatively fixed overhead structure.

Sales to the company's top five customers represented approximately 34% of sales in six months ended June 30, 2013, down from 43% last year.

The net loss was $648,000 and $817,000 for the three and six months ended June 30, 2013. This compares with a net loss of $333,000 and $482,000, in the comparable periods last year. The company had a net loss per share of $0.05, basic and diluted, for the three months ended June 30, 2013 compared to a net loss of $0.03 last year. For the six months ended June 30, 2013 and 2012, the basic and diluted net loss per share was $0.07 and $0.04, respectively.

"Following on my remarks last quarter, our second quarter and year-to-date results continue to reflect the impact of planned cuts to defense spending under the 2011 Budget Control Act, as well as the burden of additional cuts as part of the 2013 budget sequestration. Despite these challenges, we saw a modest increase in year-to-date sales over the same period last year," said President and CEO, Amy Eskilson.


 

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