Aeroflex swings to profit despite sales decline
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Aeroflex Holding Corp., a Plainview maker of radiation-hardened semiconductors used in satellites, reported Wednesday a 1 percent decline in third-quarter net sales to $155.5 million, but it swung to a profit over the same period a year ago.
Net income was $5.3 million, or 6 cents per share, compared to a loss of $9.4 million, or 11 cents per share, in the 2013 quarter, which was marked by sharp U.S. government defense cutbacks.
Aeroflex shares rose 9.27 percent on heavy volume to close at $8.49 Wednesday.
In a conference call, chief executive Len Borow cited continued "macro government-related headwinds" that hurt results.
Chief financial officer John Adamovich Jr. said on the call that sales of the company's microelectronics solutions business were hindered by limits on trade with Russia.
Borow also said the company is continuing a cost-cutting drive that seeks to find "operational efficiencies across the company."
The company's quarterly results included Shenick Network Systems Ltd., which was acquired for $27.1 million in cash on Feb. 5.
For the fourth quarter ending June 30, Aeroflex forecast net sales of $186 million to $196 million and income from continuing operations of $18 million to $21 million, or 21 cents to 25 cents per share.