SUNNYVALE, Calif. (AP) — Applied Signal Technology Inc.'s net income fell 19 percent in the latest quarter as acquisition expenses offset climbing revenues.
The company, which makes reconnaissance equipment mostly for the U.S. military, said Wednesday it earned $3.3 million, or 24 cents per share, in the three months ended April 30, its fiscal second quarter.
In the same period last year, the company earned $4.1 million, or 31 cents per share. The company blamed the fall on mostly on acquisition-related expenses.
Excluding special items, the company would have earned 30 cents per share.
Analysts polled by Thomson Reuters expected 24 cents per share. It wasn't immediately clear if that estimate excluded special items, as analyst estimates typically do.
Revenue rose 9 percent to $58.2 million. The company attributed the rise to growth in its broadband communications business and contributions from Pyxis Engineering, a company whose acquisition closed in September.
Analysts expected revenues of $55 million, according to the Thomson Reuters poll.
Applied Signal also closed another acquisition, of a company called Seismic Engineering, near the end of April. Because of when that deal closed, it didn't meaningfully contribute to the latest quarter's results.
For all of fiscal 2010, the company expects revenue of $223 million to $233 million. Analysts were expecting $222 million.
The company's shares fell 3 percent, or 53 cents, to $17.34 in extended trading, after the earnings were announced. In the regular session, the stock had risen 70 cents, or 4.1 percent, to close at $17.87.
