Struggling Wespercorp Reports $712,000 Third-Quarter Loss

Wespercorp, the Santa Ana electronics maker that has been struggling to avoid bankruptcy, reported a $712,000 loss for its fiscal 1987 third quarter, in large part due to settlement of two lawsuits.

For the period ended Dec. 31, the company said it set aside $600,000 to dispose of the two lawsuits that had been hanging over the company for years.

Still, the quarter’s loss represented the company’s faltering business levels. Sales during the period were $2.1 million, down 36% from the $3.3 million recorded the year before. During the prior period, losses were $98,000, lower than during the most recent period even after adjustment for the suit settlement costs.

The company attributed its sales drop to the gradual completion of its contract for the Federal Aviation Administration. George E. Dashiell, president and chief executive, said that nearly half the computerized air traffic control systems the company is expected to produce for the FAA have already been installed and accepted by the government. He said the company is expected to complete its work on the contract in July.

Last week, the company said it had received a 90-day extension of its bank loan from Jan. 31 to May 1. The company owes Union Bank $5.4 million.