EA Engineering, Science and Technology Inc., a Hunt Valley environmental and safety consulting company, reported a sharp decline in third-quarter earnings yesterday and a slight drop in net revenue.
For the three months that ended May 31, EA posted net income of $37,900, down 85.6 percent from a profit of $263,000 reported for the comparable period last year. On a per-share basis, the company earned 1 cent in the quarter, down from 4 cents a year earlier.
Revenue in the quarter was $9,038,700, down 1.16 percent from $9,145,400 in the comparable period last year.
The company attributed its financial woes to additional operating costs related to the restatement of its financial results for fiscal years 1999 and 1998.
Restatement became necessary earlier this year after the company discovered that a former employee posted "fictitious revenue" during 1998 and last year.
One of the more positive notes in EA's third-quarter earnings report was that new orders reached $16.9 million, an increase of 15 percent over new orders of $14.7 million in the year ago period.