Good Morning
Good Morning

Aeroflex sales dip with U.S. budget cuts

Aeroflex chief executive Len Borow.

Aeroflex chief executive Len Borow. Credit: Jim Peppler, 2011

Aeroflex Holding Corp. Inc., a Plainview maker of wireless communication components, said its sales dipped modestly as government spending cuts took hold in Washington.

The company's fiscal third-quarter revenue fell to $160.1 million during the three months ended in March, down less than 1 percent from the same period last year. The results beat analysts' expectations.

"We are executing on our strategic plan despite the challenges that exist due to sequestration in some of our government markets," Aeroflex chief executive Len Borow said, referring to the across-the-board spending cuts enacted after Congress failed to pass a deficit reduction plan.

As a result of those cuts, the company's sales to the U.S. government dropped to 28 percent of its total business during the quarter, down from 33 percent one year ago.

Aeroflex is among several Long Island manufacturers that have suffered since the sequestration took effect.

On Tuesday Edgewood aircraft parts maker CPI Aerostructures Inc. blamed the cuts for a 13 percent fall in its first-quarter profits. And on Wednesday, Hauppauge-based satellite communication device manufacturer Globecomm Systems Inc. said its sales dropped nearly 30 percent.

Aeroflex reduced its net loss for the third quarter to $9.4 million, down from a $65.3-million loss in 2012. In the year-earlier period, the company took a $59.7-million charge when writing down the value of its radio frequency microwave unit.

Aeroflex's stock rose 1.17 percent to $7.81 a share in Thursday's trading.

More news