Special Devices Inc. Profit Falls 32% in 2nd Quarter

Special Devices Inc., a Newhall manufacturer of devices that help ignite missile engines and trigger automotive air-bag systems, said its fiscal second-quarter profit fell 32% despite a 20% increase in sales.

For the three months that ended May 2, Special Devices earned $206,000 compared with $302,000 a year earlier. Revenue in the latest quarter rose to $8.47 million, from $7 million a year earlier, as sales increased in the company’s automotive products division. But gross margins for that division are smaller than the company’s aerospace unit, where sales continued to decline.

With the latest results, the company’s profit dropped 39% for the six months that ended May 2, to $294,000 from $485,000 a year earlier. Its half-year sales, however, were $15.1 million, up 12% from $13.5 million a year earlier.