Cost Overruns to Offset Profits at Perceptronics

Perceptronics, a Woodland Hills company that performs research for the military, reported that operating profits will be wiped out by write-offs in the fourth quarter ended March 31 because of cost overruns.

During the same period in 1986, Perceptronics earned $330,493, or 9 cents a share, on sales of $7.9 million.

The audited year-end results will be available in June, said Gershon Weltman, Perceptronics chief executive.

The company said it absorbed cost overruns when it sold its 50% interest in Sim Tech Ltd., an Israeli company that specializes in military simulators. Weltman said the company experienced cost overruns on several defense contracts.