4th Quarter Earnings Drop for EIP Microwave

EIP Microwave Inc., a Newport Beach manufacturer of microwave test and measurement instruments for the defense and telecommunications industries, said lower sales and high costs of research and new product introductions contributed to a 98% decline in the company’s fourth quarter earnings, which fell to $16,000 from $708,000 for the same quarter in 1984.

Sales in the fourth quarter, ended Sept. 27, were $4.9 million, down almost 25% from $6.5 million for the year ago period. In addition, the company saw a 30% slump in incoming orders during the just-completed fourth quarter. Company officials attributed the decline to a general softness in microwave test equipment markets worldwide and to a reduction in orders from the U.S government.

EIP Microwave ended its 1985 fiscal year with income of $759,000, down 58% from $1.8 million from the previous 12-month period. Sales were $20.3 million, a slip of 1% from $20.6 million the year before.