Merger Improves Datron’s Performance

Datron Systems, a communications equipment company in Simi Valley, reported 5% higher earnings on 28% higher sales for its the third quarter ended Dec. 31.

Net income was $541,000, against $516,000 a year ago, but earnings per share fell to 20 cents from 23 cents a year ago because of a 21% increase in shares outstanding. The increase stems from an initial public offering March 26, and the issuance of 133,102 shares of Datron common stock in connection with the acquisition of Trans World Communications on Oct. 31.

Third-quarter sales were $6.1 million, up from $4.7 million. Sales and profits of Trans World Communications were included in Datron’s results from the date of acquisition, the company said.

Thomas V. Baker, Datron’s chief financial officer, said the merger of TWC and Datron improved the quarterly results. He said sales by the former Datron operation were down for the quarter.

Datron makes and sells satellite, radar and radio communications systems, mostly for military and government use. TWC makes and sells radio communications systems.