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The LGL Group, Inc. (NYSE Amex:LGL) (the “Company”), announced results for the three and six months ended June 30, 2012.
Total revenues for the three months ended June 30, 2012, were approximately $7,582,000, a decrease of 21.4% compared to revenues of $9,646,000 for the comparable period in 2011. The Company reported a net loss of ($215,000), or diluted loss per share of ($0.08), for the three months ended June 30, 2012, compared with net income of $346,000, or earnings per share of $0.13, for the same period in 2011. Sequentially, net loss for second quarter 2012 was improved by 63.7%, or $387,000, compared to net loss of ($593,000), or diluted loss per share of ($0.23) for first quarter 2012.
Total revenues for the six months ended June 30, 2012, were approximately $14,756,000, a decrease of 20.9% compared to revenues of $18,666,000 for the comparable period in 2011. The Company reported a net loss of ($808,000), or diluted loss per share of ($0.31), for the six months ended June 30, 2012, compared with net income of $587,000, or earnings per share of $0.23, for the same period in 2011.
The decrease in revenues for first six months of 2012 was primarily due to reduced demand from existing clients for existing products in our Internet Communications Technology (“ICT”), and Military, Aeronautics and Instrumentation (“Mil/Aero”) market segments, which was driven by ongoing delays in ICT infrastructure spending and uncertainty related to government budget and spending cycles. The decrease in net income is a direct result of the decrease in revenues, as well as a decline in gross margin as compared to the same period in 2011, which was the result of pricing and cost pressures throughout the supply chain and of spreading fixed infrastructure costs over a smaller revenue base.
Greg Anderson, LGL’s President and Chief Executive Officer, said, “We are continuing to feel the effects of the prevailing macroeconomic weakness, which is also impacting our major OEM customers and EMS suppliers across the supply chain. While our results reflect the business cycle that we are working through, we made strides to improve costs compared to first quarter 2012, and our balance sheet remains strong. We remain in excellent position with our clients.”