Irvine Sensors Corp. said last week that it raised $200,000 through the private sale of convertible preferred stock to an existing shareholder. Officials of the Costa Mesa-based company declined to identify the investor. However, he is neither a company insider, nor a large shareholder, said John Stuart, chief financial officer.
The stock must be converted into common shares by the end of October, 1989. Once converted, the shares sold in the private offering would give the investor about 4% of the 4.9 million shares of Irvine Sensors stock now outstanding, Stuart said.
Irvine Sensors, which develops infrared devices and other electronic devices, is heavily dependant on military spending. Although the company would have preferred not to raise equity capital, Stuart said the money is needed to sustain marketing activities until new defense projects get under way during this new fiscal year.
As previously reported, Irvine Sensors reported a net loss of $1.4 million during the fiscal nine months ended June 29, compared with a $106,300 loss a year earlier. Revenues during the period fell 43% to $2 million from $3.5 million a year earlier. The company blamed the loss and lower revenues on delays in defense spending.
Stuart said the company expects to report a loss on lower earnings for its fiscal 1986, which ended Sept. 30. Those results will be released in early December, he said.