Firm Cites Expansion Costs in $244,000 Loss

View Tech Inc., a Camarillo producer of video communications systems, blames costs related to an expansion program for a loss suffered in the final quarter of 1995.

The company had a deficit of $244,000, or 5 cents a share, during the period. This compared with a net profit of $183,000, or 11 cents a share, in the same quarter of 1994.

View Tech’s revenues increased 48% in its latest quarter, however, rising to nearly $3 million from $2 million a year earlier.

The company also suffered a loss in the final half of 1995. The deficit amounted to $300,000, or 10 cents a share, on revenues of $4.7 million. This compared with a profit of $252,000, or 15 cents a share, on sales of $3.4 million in the final six months of 1994.

Among expenses related to its expansion, View Tech cited an increase in its marketing, technical and administrative staff to 41 from 15 a year ago.

Robert G. Hatfield, chairman and chief executive, said selling and administrative expenses have been declining as a percentage of sales.

“We believe gross margins will continue to improve and that selling, general and administrative expenses will continue to decrease, as a percentage of revenues, as the regional offices are integrated with the company’s California operations,” he said.

Hatfield added that two major customers were signed up recently, resulting in $1.3 million in sales.

“We intend to aggressively pursue larger customers as we expand our national service and sales capabilities.”

View Tech’s expansion includes the upcoming opening of a sales office in Nashville to serve Tennessee, Arkansas and Mississippi.