Telescope maker Meade Instruments Corp. said Thursday that problems at an Asian supplier slowed sales and led to a lower profit in the quarter ended Nov. 30.
Investors shrugged off the issue, sending shares of the Irvine-based company 2.6% higher to $2.75.
Meade, which makes telescopes, binoculars and other optical gear, said sales in the quarter were up 7% to $53.1 million, versus a year earlier. Net income was $1.5 million, down from $2.8 million a year ago.
Revenue for the company’s telescopes and binoculars grew more than 20% in the period. But Meade’s Simmons riflescope unit saw sales fall 50%.
“The disappointing sales at our Simmons subsidiary were due to start-up difficulties at our new Asian supplier,” said Chief Executive Steven Murdock, in a statement. “We were unable to obtain products sufficient to satisfy existing orders on the vast majority of our newly designed Simmons riflescopes.”
Murdock said the company has tapped a second Asian supplier to make the scopes.
“We expect Simmons sales to return to historical levels as the supply difficulties are resolved,” he said.
