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Tel-Instrument Profit Declines On Lower Margins - Quick Facts

7/18/2012 8:15 PM ET

Tel-Instrument Electronics Corp. (TIK: Quote) Wednesday reported a decline in fourth quarter net income to $48,936 or $0.02 per share from $207,342 or $0.08 per share in the previous year, hurt by lower margins that outweighed growth in revenues.

Tel-Instrument, which makes avionics test and measurement solutions, reported a 37% rise in quarterly revenues to $5 million from $3.8 million last year.

The company, as earlier reported, is forecasting sharply reduced revenues and a significant loss in the first quarter due in part to a temporary hold in CRAFT 708 production shipments. It also continues to experience delays in securing a production release on the TS-4530A program from the Army.

Nonetheless, for the full year ending March 31, 2013, the company continues to expect significant revenue and profitability growth.

Jeff O'Hara, President and Chief Executive Officer of Tel stated, "...Our backlog remains strong at approximately $39 million, and as we get through this short-term delay in shipments, we expect to begin to achieve improved results."

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by RTT Staff Writer

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