Applied Signal 3Q profit up 69 pct as costs fall

Applied Signal 3Q profit up 69 percent as reduced costs offset decline in revenue

• On 5:39 pm EDT, Tuesday September 1, 2009

SUNNYVALE, Calif. (AP) -- Applied Signal Technology Inc. on Tuesday reported a 69 percent increase in its fiscal third-quarter profit as reduced costs more than offset a 1 percent drop in revenue. But results still fell short of analysts' expectations.

The manufacturer of intelligence, surveillance and reconnaissance products earned $3.3 million, or 25 cents per share, for the period ended July 31, compared with $1.97 million, or 15 cents, in the year-earlier quarter.

Revenue came to $49.5 million, down from $49.9 million, as order delays for tactical signals intelligence products more than offset strength in its broadband communications and sensor businesses.

Analysts were forecasting a 26-cent per share profit for the third quarter and revenue of $53.6 million, according to Thomson Reuters.

The Sunnyvale, Calif.-based company said new orders in the quarter came to $51.2 million, down from $70.3 million last year, due to the timing of contracts awarded.

Shares of Applied Signal fell $2.72, or 10 percent, to $23.50 in after-hours trading. The stock closed at $26.22, up 64 cents, in the regular session.