CompuDyne Corp., a Hanover maker of security products, said yesterday that $1.8 million in cost overruns and a $416,000 accounting charge related to an acquisition led to a 91 percent drop in net income in the fourth quarter.
For the quarter that ended Dec. 31, the company reported net income of $125,000, or 2 cents per diluted share, on revenue of $44.3 million.
That compared with a profit of $1.4 million, or 21 cents a share, on sales of $34.8 million in the fourth quarter of 2001.
The company warned investors and analysts at the end of last year that the fourth quarter would be "nominally profitable."
For the full year, CompuDyne had net income of $1.8 million, or 23 cents per diluted share, down 56 percent from $4.1 million, or 67 cents, in 2001. Revenue was $155.6 million, up from $127.4 million a year earlier.
CompuDyne had postponed reporting its fourth-quarter and year-end results for five weeks.
On Feb. 10, the company, which makes security products for airports and U.S. embassies, said it was delaying the release of its financial results so that it could evaluate the impact of the $12 million purchase last year of its Tiburon unit. The unit makes computer-aided dispatch systems used by police and fire stations.
The $416,000 charge, a non-cash adjustment, was related to the Tiburon purchase, CompuDyne said.
The company's chief executive officer, Martin A. Roenigk, could not be reached immediately for comment yesterday.
In a statement yesterday, CompuDyne said it had $1.8 million in cost overruns on several projects at the West Coast operations of its institutional security systems unit. To address the problem, CompuDyne said, it implemented more centralized controls and replaced employees at the unit.
CompuDyne also had lower-than-expected volume and excess plant capacity throughout the year in its attack protection unit. After the Sept. 11 terrorist attacks, the company spent $3 million on a 75,000-square-foot plant in late 2001 in anticipation of increased homeland security and U.S. embassy demands. But orders since then have been slow to materialize.
Shares of CompuDyne rose yesterday 29 cents to close at $6.79.