Citing a one-time charge for cost overruns on a government contract, Datum Inc. said its third quarter earnings fell to $141,000 from $346,000 for the comparable period last year.
The Anaheim-based maker of frequency and timing instruments declined to discuss the project but said it encountered unexpected "technical difficulties." An additional $160,000 will be required to complete the work, Datum said, but no further cost adjustments are anticipated. Datum said it expects to complete the fixed-price contract in January and will show a profit on the project.
Analysts had projected third quarter income of about $250,000, the company said.
Revenue for the third quarter also declined, Datum said, totalling $4.7 million compared with $5.1 million for the first nine months of 1984.
For the nine months, the company reported net income of $623,000, compared with $1.1 million for the comparable period a year earlier. The year-ago figure included a tax credit of $98,000. Revenue for the period was $13.8 million compared with $14.1 million for the first nine months of 1984.
Datum said its expectations for the fourth quarter "remain very high" and "definitely" should exceed second quarter earnings, which were $242,000, the high for the year.
"The company's shippable backlog suggests considerable improvement over any quarter thus far in 1985," said Louis B. Horwitz, chairman and president.