Micom Systems said its earnings fell 60% in the second quarter ended Sept. 30 to $2.67 million, or 15 cents a share, from $6.7 million, or 39 cents a share, a year earlier.
The Simi Valley-based company, which makes computer communications equipment, attributed the decrease to slow sales, overhead costs that remain high despite the closing of its Chatsworth plant in June, and a $1-million accounting adjustment. The adjustment was prompted by a decrease in the value of its inventory caused by a sharp decline in prices for the components used in its products.
Micom said its sales in the quarter fell 1% to $47.1 million from $47.7 million a year earlier.
In the first six months of its fiscal year, Micom's net income dropped 62% to $5 million, or 29 cents a share, from $13.3 million, or 76 cents, a year earlier. Sales increased less than 1% to $93.6 million from $92.9 million.