Smith Laboratories Inc. reported net income of...

Smith Laboratories Inc. reported net income of $206,000 on sales of $2.5 million for the third quarter ended July 31, contrasted with net income of $4 million on revenues of $2.4 million over the same three months last year.

Last year’s third-quarter profit included the gain on the sale of Chicago-based Smith Pharmaceutical Products in July, 1986, to Baxter Travenol Laboratories Inc.

For the nine months ended July 31, Smith reported net income of $537,000 on revenues of $7.1 million, contrasted with net income of $3.7 million on revenues of $6.9 million over the same three quarters last year.

Smith Laboratories is a holding company whose only operating subsidiary is Sutter Biomedical Inc., a San Diego-based manufacturer of devices that mechanically exercise the lower limbs of injured or surgical patients. The company is actively seeking to acquire other companies, spokesman Charles Cashion said Tuesday.