San Diego Business Journal

Manufacturer Reports Net Loss in Q4

Sunday, March 18, 2012

Pulse Electronics Corp., a manufacturer of electronic components that switched its headquarters from Philadelphia to San Diego last year, reported a fourth-quarter operating loss of $900,000, compared with an operating profit of $5.4 million in the like quarter of 2010.

Pulse said in a statement March 12 that its net loss was $43.4 million compared with a net profit of $1.5 million in the like quarter of 2010.

Sales for the quarter were $90.5 million, down from $101.2 million in the prior year’s fourth quarter.

CEO Ralph Faison said the company continues to make excellent progress on a strategic turnaround plan, including strong growth in wireless sales and reduced operating expenses.

However, Pulse’s high debt load is holding back the pace of the turnaround. In an effort to de-lever the business, Pulse is looking to sell some non-strategic product lines to raise sufficient funds to pay off significant debt, Faison said.

He said the company’s first-quarter net sales will range from $88 million to $93 million, and result in an operating loss of $2 million to breakeven.

— Mike Allen