Rochester Business Journal

Performance Technologies Inc. grew its revenues and trimmed its net loss in the second quarter, the company reported Thursday after the market closed.

Revenues rose to $7.4 million, up from $6.4 million a year ago. Revenue for the six months ended June 30 totaled $14.8 million, up from $13.3 million a year ago.

"Revenue levels remain challenging with protracted procurement decisions due to ongoing economic uncertainty and book-to-ship delays resulting from industrywide supply chain shortages," said John Slusser, president and CEO. 

PTI supplies network communications products mainly to telecom, military, aerospace and government customers.

The firm’s net loss for the second quarter totaled almost $2 million, or 18 cents a share, down from $4.7 million, or 43 cents a share, a year ago. For the first half of 2010, the company’s loss was $3.9 million, or 35 cents a share, down from nearly $6.2 million, or 55 cents a share, a year ago.

The loss included a non-cash income tax charge of 30 cents a share for a valuation allowance recorded against the company's United States deferred tax assets; a restructuring charge of 4 cents a share and stock-based compensation expense of 3 cents a share.

Cash and investments totaled $26.5 million, or $2.39 a share, and the PTI had no long-term debt as of June 30.
 
"During the quarter, we prudently continued our strategic investments in product evolution, market diversification and commitment to establishing a footprint in several global growth markets,” Slusser said. “I am pleased to note that as a result of our efforts in Africa, we have now captured core network signaling deployments from two premier sub-Saharan wireless service providers, which will begin to contribute to revenues in the third quarter."

On Wednesday, PTI announced a deal with Nigeria-based telecom provider Starcomms PLC to upgrade its systems with PTI’s signaling technology. Starcomms serves 3.2 million customers in Nigeria with mobile services, Internet broadband services, and fixed wireless services.

Friday afternoon, PTI stock (NasdaqGM: PTIX) was trading at $2.26 a share, down from Thursday’s close of $2.35. The company’s 52-week trading range is $2.20 to $3.10.

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