Blaming start-up costs of new projects and the cyclical nature of the construction business, Ultrasystems Inc. of Irvine said it expects to report lower revenues and earnings for its fiscal 1987 first quarter ended April 30.
In the same period last year, the company, which builds power plants and advanced military systems, had profits of $1.3 million on revenues of $38.5 million.
The company said it would report the quarterly results in early June.
In its announcement, the company said it has recently started four new power plant projects and is not receiving the same level of revenues as it was last year when it was further along on three major plant projects. In addition, the company said it had incurred additional expenses developing new products for its defense and power plant work.
Despite the quarterly decline, the company said it expects revenues to "increase significantly during the course of the year." The four power plant projects started recently are worth a potential $215 million.