Aeroflex reports earnings are up modestly

Aeroflex Holding Corp. Inc., a Plainview company that makes electronic equipment used in wireless communications, said Thursday its fiscal fourth-quarter sales climbed modestly as the aerospace and defense industries begin to recover from government spending cuts in Washington.

The company, which derives roughly one third of its sales from the U.S. government or defense contractors, said its revenue increased 2 percent from the year-ago quarter, to $188.8 million, during the three months ended in June.

"Despite continued delays in government funding we are cautiously optimistic about our growth prospects," Aeroflex chief executive Len Borow said during a call with analysts.

Aeroflex's sales beat the expectations of analysts, who had forecast revenue of $180.4 million. The company's stock rose 3 percent Thursday, to $7.84.

Despite the rise in sales, Aeroflex reported an $81.5 million fourth-quarter loss, primarily because the company wrote down $94.1 million in assets for its aviation material command group. Last year, Aeroflex reported a $17.2 million profit for the fourth quarter.

Aeroflex, which employs about 2,800 people, has struggled since Congress failed to pass a deficit reduction plan, triggering across-the-board spending cuts known as the sequester. But the company's sales have improved in recent months as government contractors begin to better understand how those cuts affect particular defense projects.

Borow said he expects the company's sales to be between $135 million and $141 million for the three months ending in September, which is roughly flat compared to the same period last year. He expects a quarterly loss of between $2 million and $3.5 million.

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