The Ottawa-based body armour provider said revenues sank to $7.44 million from $9.59 million a year earlier, and it had a net loss of $158,984 or 0.6 cent per share, compared to a year-earlier profit of $41,758 or 0.2 cents per share.
“The decrease in revenue for the quarter is a reflection of reduced buying activity as our customers continue to face significant budget pressures,” said PSP chief executive David Scott in a statement.
In PSP’s management discussion and analysis, the company attributed the lower sales numbers to a decline in “core law enforcement product sales in Canada and the United States as a result of curtailed government spending.”
However, it said it also managed to increase sales to the Department of National Defence, which helped to slightly offset the losses in the law enforcement market.
Mr. Scott noted that the company had cut another $470,000, or 23.6 per cent, from its operating expenses in a bid to improve its bottom line. The move follows a 13.8-per-cent reduction in costs in PSP’s first quarter.
“Management believes that the company remains in a good position to weather the current industry downturn with products that are essential to our customers’ operations in security, law enforcement and defence,” he added.
After adjusting for one-time items, PSP saw positive earnings of $157,829, down from $389,383 a year earlier. Adjusted earnings numbers included an $86,849 restructuring charge.
