Herley takes bigger loss on impairment and charges

Herley Industries says fiscal 4th quarter loss grew due to $66.9 million in one-time costs

• On 10:14 am EDT, Friday October 16, 2009

LANCASTER, Pa. (AP) -- Herley Industries Inc. says its fiscal fourth-quarter loss swelled due to a slew of one-time charges, including a $44.2 million goodwill impairment.

The company, which designs and develops microwave-based technology for the aerospace, defense and medical industries, said its loss grew to $44.4 million, or $3.26 per share, from $323,000, or 2 cents per share a year ago. That included $66.9 million in one-time expenses. Its revenue grew 13 percent, to $43 million from $37.9 million.

Herley reported its fourth quarter results late Thursday. The three-month period ended Aug. 2.

The company wrote down the value of its business by $44.2 million. Other one-time costs in the quarter included a $10.6 million payment to settle employment dispute with two former officers, and charges for settlements of legal claims, the transition of a manufacturing operation, and inventory adjustments. Those items totaled about $12.1 million.

Herley said its revenue increased because of its acquisition of Eyal Microwave Industries, an Israeli company that supplies components to the defense industry. It Herley bought Eyal in September 2008, early in its fiscal year.

For the full fiscal year, Herley said its loss quadrupled to $41.2 million, or $3.03 per share, from $10.3 million, or 76 cents per share. Revenue rose 18 percent, to $160.1 million from $136.1 million.

In morning trading, the company's stock lost 45 cents, or 3.4 percent, to $12.53.

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