YOU ARE HERE: LAT HomeCollectionsTax


Scan-Tron 2nd Quarter Earnings Show Decrease

January 27, 1987|KEN CHAVEZ

Scan-Tron Corp. posted fiscal 1987 second-quarter net earnings of $527,000, a 13.7% decrease from $611,000 recorded for the same period last year. The company said its earnings for the most recent quarter were lower than anticipated because the new federal tax laws eliminated a $201,000 investment tax credit. The company's second quarter earnings for its fiscal 1986 reflect an investment tax credit of about $85,000.

The Tustin-based publisher of test-scoring forms and manufacturer of scoring equipment reported a slight revenue drop of 1.2% for the quarter, to $6.5 million from $6.6 million.

Six-month earnings showed an 8.3% increase to $1.3 million, compared to $1.2 million a year earlier. Half-year revenues totaled $13.2 million, up 7.3% from sales of $12.3 million for the first six months of fiscal 1986.

John T. Saunders, the company's president and chief executive officer, said Scan-Tron would have realized a $201,000 investment tax credit from its 5-for-4 stock split in September had it not been for changes in federal tax laws.

Saunders said that although the company "took a beating now because of the ITC," he expects Scan-Tron will benefit from tax law changes in the next fiscal year.

The company attributed lowered second-quarter revenues to poor product sales of the company's test-publishing subsidiary, American Testronics.

Saunders said he believes the subsidiary will return to profitability after operations were streamlined and a new president, Robert Graham, replaced Leo Momunday in November.

Los Angeles Times Articles