Datron to Lay Off 60 at Trans World Unit

Datron Systems Inc., citing unexpected delays in foreign orders, said it is laying off 60 people at its Trans World Communications unit in Escondido, which will cut the unit’s work force by 30% to 140 employees.

The unit makes high-frequency radio products used for long-distance ground communications, and it accounted for about 37% of Datron’s sales in the company’s fiscal year ended last March 31. Datron, headquartered in Simi Valley, also makes satellite communications equipment.

Datron said the layoffs are necessary because of “delays in the receipt of several large foreign orders for radio products, which had been expected earlier this year.” The delays also prompted Datron to temporarily stop buying components for its radio products.

In addition to the layoffs, Datron withdrew its earlier prediction that it would earn about $2.6 million overall during its current fiscal year. “It is apparent that revenues and earnings for fiscal 1993 will be significantly lower than those reported for fiscal 1992,” the company said.

In fiscal 1992, Datron earned $3.46 million on revenues of $73 million.

Datron’s layoff announcement Thursday sent the company’s stock into a tailspin. Its price tumbled 27% that day, to $5.125 a share, although it closed Monday at $6 a share on the NASDAQ market.

The delayed sales of radio products is the latest setback over the past several months for Datron, which has been hurt by the general slowdown in defense spending. Datron had been counting on the radio-products group to help maintain the company’s growth.

Late last month, Datron posted a $296,000 loss for its fiscal second quarter ended Sept. 30, compared with a profit of $1.37 million a year earlier. Its revenues in the period fell 26%, to $14.2 million from $19.1 million.

For the first half of its fiscal year, Datron lost $65,000, compared with year-earlier earnings of $2.18 million, and its six-month revenues were off 20%, to $28.8 million from $35.8 million.

Thomas V. Baker, Datron’s chief financial officer, declined comment on the delayed orders, except to say that the foreign customers had different reasons for not ordering the equipment as expected.