TODAY'S PAPER
Few Clouds 34° Good Morning
Few Clouds 34° Good Morning
Business

Aeroflex sales dip on federal spending uncertainty

Aeroflex employees work in packaging at the Plainview

Aeroflex employees work in packaging at the Plainview plant. Photo Credit: Newsday, 2006 / Audrey C. Tiernan

Aeroflex Holding Corp., a Plainview company that makes wireless communications equipment, said Thursday its fiscal first-quarter sales dipped amid ongoing uncertainty over federal spending.

The company, which derives roughly one third of its sales from defense contractors and the U.S. government, said its revenue fell to $132.7 million during the three months ended in September, down 4 percent from the same period last year.

"This quarter we continued to execute well, but are disappointed in our overall results as the weakness and uncertainty in our government end markets continues," Aeroflex chief executive Len Borow said in a statement announcing the earnings.

In a conference call with analysts, Borow said it was difficult to discern whether the slowing sales stemmed from the government shutdown or the overall spending cuts known as the sequester.

Despite lower sales, the company swung to a $10.5-million first-quarter profit, or 12 cents per share, thanks to the $14.1-million gain from the sale of Aeroflex Test Equipment Services, a division of its United Kingdom subsidiary.

Aeroflex's sales fell short of the expectations of analysts, who had forecast revenue of $138.4 million. The company's stock fell 39 cents, or 5.19 percent, to $7.13.

More news

Sorry to interrupt...

Your first 5 are free

Access to Newsday is free for Optimum customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE