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Anaheim Firm Reports 1985 Income Drop

February 11, 1986|CARLA LAZZARESCHI | Times Staff Writer

Blaming a drop in sales to computer makers and a mistaken gearing-up for business that didn't materialize, Pacific Scientific Co. of Anaheim said Monday that full-year income dropped 18.5% to $5.7 million from $7 million. Revenues for the fiscal year ended Dec. 27 were $89.8 million, off 2.6% from $92.2 million in fiscal 1984.

Fourth-quarter profits dropped 20% to $1.6 million from $2 million. The precision instrument maker said that revenue for the period was $22.2 million, down 7.5% from $24 million.

Richard V. Plat, senior vice president for finance and administration, said that Pacific Scientific's profits were hurt by a 16% drop in sales of motors to computer makers, as well as by the company's decision to increase spending on operations on the mistaken assumption that sales would increase during the year.

By June, when it became clear that sales were falling rather than increasing, the company began laying off staff. By August, the workforce had been trimmed from its January high of about 1,100 to 940--its current level--Plat said.

Despite a disappointing 1985 performance, Plat said Pacific Scientific expects profits to increase in 1986. He said the company is continuing to pursue its strategy of acquiring small high-technology companies with complementary product lines.

Plat said that the company has completed the purchase of Ray-Mar of Rancho Cucamonga and has integrated the smaller company's operations into Pacific Scientific's units in Anaheim.

The company expects to announce another purchase shortly and is looking at several other potential acquisitions for later this year, Plat said.

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