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Transcrypt reports improved 2Q; promotes Hattey at E. F. Johnson

Transcrypt reports improved 2Q; promotes Hattey at E. F. Johnson

Transcrypt International, Lincoln, NE, reported improved financial performance for the quarter ended June 30 compared with the same quarter last year.
  • Written by Urgent Communications Administrator
  • 27th July 2001

Transcrypt International, Lincoln, NE, reported improved financial performance for the quarter ended June 30 compared with the same quarter last year. The company lost $260,000 for the quarter, compared with a loss of $2.6 million for the comparable period last year. Second-quarter revenues were $10.6 million, compared to $11.9 million for the second quarter in 2000.

For the first six months of 2001, Transcrypt’s net loss of $1.1 million on $20.1 million of revenue was 81% better than last year’s $5.8 million loss on $23.3 million of revenue. The company’s report said that the reduced year-to-date revenues primarily stem from Transcrypt’s decision to de-emphasize contract manufacturing for other organizations. Transcrypt ended its contract to manufacture mobile transceivers for Securicor Wireless, for example.

“The second quarter’s gross margin of 38% is a substantial increase compared to the reported 17% gross margin from the second quarter of 2000. In addition, operating expenses, at $4.3 million, were 13% below the corresponding quarter last year,” said Michael E. Jalbert, Transcrypt’s chairman. “With our focus on core competencies and operational efficiency, we continue to target a return to profitability in the year 2001.”

David L. Hattey, senior vice president and general manager of Transcrypt’s E. F. Johnson subsidiary, has been promoted to president and general manager of Johnson. Hattey joined the company in March 2000 and was paid $225,000 in salary, signing and service bonus, moving allowance and other compensation, not including stock options, that year.

Jalbert commented, “Clearly, we identified the need to appoint strong local leadership as the E. F. Johnson operations continue to centralize in Waseca [Minnesota]. Dave and his Waseca-based management team will lead the company’s focus on new product development and support of future technologies to strengthen our competitive position in the systems market.”

When he joined Johnson, Hattey left his previous post as vice president of operations for Racom, Marshalltown, IA. Prior to his work for Racom, he was vice president of Ericsson-GE in Lynchburg, VA.

Transcrypt designs, manufactures and markets trunked and conventional radio systems, land mobile radio repeaters and mobile and portable radios. It manufactures information security products that prevent the unauthorized interception of sensitive voice and data communication.

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