Helionetics Posts Loss of $1.2 Million in 2nd Period

Helionetics Inc., the Irvine defense contractor that filed for bankruptcy protection last month, said Friday that it lost $1.2 million in the second quarter, a substantial improvement from the $5-million loss posted a year earlier.

Revenues for the period rose 81% to $4 million from $2.2 million.

Although the company did not publicly attribute the improvement to its turnaround strategy, the data supports the claim of ousted President Michael Mann that Helionetics fired him even as his plan of shedding money-losing operations and cutting staff and costs was beginning to show results.

Mann was fired just four days after Helionetics filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code. Chairman John Shelton said that Mann was removed because directors believed he did not move forcefully enough to prevent the bankruptcy.

The company said the second-quarter loss was “substantially attributable to non-recurring and non-operating charges,” including interest expense, lease termination costs, obsolete inventory provisions, and legal expenses relating to the bankruptcy.

In its quarterly filing with the Securities and Exchange Commission, the company said sales for the second quarter increased because of two major government contracts for its lasers.