Meade’s Profits Are Under Expectations

Meade Instruments Corp. posted lower-than-expected profits and sales for the fiscal third quarter.

The Irvine manufacturer of telescopes, accessories and binoculars reported that third-quarter net income dropped to $2 million, or 13 cents a share, from $7.7 million, or 50 cents a share, a year ago. Analysts were expecting quarterly earnings of 41 cents a share, according to a survey by First Call/Thomson.

Sales for the quarter ended Nov. 30 declined 33% to $42.4 million.

The company attributed the slump in part to sluggish sales of small refractors and accessories as well as lower sales for its European subsidiary, which experienced unfavorable currency exchange rates plus lower demand.

Meade also took a charge of about $3 million from a pre-Christmas promotional campaign that included markdowns on some products.

The results were announced after the close of regular trading hours in U.S. markets. The stock fell to a 52-week low of $5.50 a share during the session before closing at $5.67, off 14 cents, in Nasdaq trading. The shares have lost 60% of their value this year.