Shares of Tustin-based Cherokee International Corp. fell about 8% Thursday after the company reported second-quarter income that fell short of expectations.
Cherokee, which makes power supply gear for manufacturers, said late Wednesday it posted a profit of $352,000 in the period, versus a $1.8 million loss a year earlier. Analysts were looking for a profit of about $960,000.
Sales were up 24% to $38.3 million in the quarter.
Cherokee said it took a $400,000 charge for legal and other fees tied to its investigation of unauthorized payments made by employees of its Indian units.
Earlier this year Cherokee said it plans to close its plant in Guadalajara, Mexico, by early next year.
The company is set to move the work to its recently built, 120,000-square-foot plant in Shanghai, China. The 35,000-square-foot Guadalajara plant employs about 250 workers. Cherokee is looking for a buyer of the plant.
