ABI American Businessphones posted fiscal 1988 first-quarter net income of $338,000, more than triple the $103,000 reported for the same period a year earlier. Revenues for the quarter ended Sept. 30 rose 23% to $7.4 million from $6 million.
Frank J. Feitz, president and chairman of ABI, attributed the record first-quarter revenues to a 44% increase in parts, maintenance and service income, as well as an 11% hike in revenue from new sales of telephone systems.
The increased sales of new systems, combined with the previously announced acquisition from TIE/Services of a client base of about 1,000 systems, expands ABI's customer base to about 8,500 systems, Feitz said.
He added that the company also benefited from a lower effective income tax rate, resulting from the new Federal Tax Reform Act.
ABI, headquartered in Irvine, sells, installs and maintains telephone systems for small and medium-size businesses.