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Whittaker Losses Reflect Electronic Unit's Woes

June 17, 1997|RODNEY BOSCH

Simi Valley-based Whittaker Corp. announced a net loss of more than $34 million for its second-quarter operations and net losses for the six-month period ending April 30 of more than $52 million.

The net loss for the quarter was $34.44 million, or $3.09 per share. The loss included a charge of $22.1 million in connection with the 1995 purchase of Hughes LAN Systems (now known as Whittaker Communications Inc.).

For the six-month period, Whittaker's net loss was $52.52 million, or $4.72 per share, after restructuring costs of $5.27 million and one-time charges of $4.7 million for the company's integration efforts.

In last year's second quarter, Whittaker had net losses totaling $4.89 million after a one-time charge of $11.7 million for the write-off of in-process research and development in the company's purchase of Xyplex Inc., a networking equipment maker, on April 10, 1996.

Sales for the current quarter were $44.73 million, compared with $47.6 million for the second quarter of fiscal 1996. Sales for the first six months of 1997 were $94.79 million, compared with $92 million for the previous year.

Although sales and profits of Whittaker's commercial aerospace business have increased from the prior quarter, Whittaker Chairman and CEO Joseph F. Alibrandi said the company's woes reflect the impact of losses in its defense electronic unit, which is slated for divestiture.

The company also announced that its bank lending group has waived compliance with certain financial aspects in the company's credit agreement until June 30. The waiver increases Whittaker's annual interest rate by a .25% on loans outstanding under the credit agreement.

Whittaker Corp. develops fluid-control valves and overheating sensors for aerospace and data-networking products and systems.

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