Micronetics cuts executive compensation again

Micronetics Inc. (NASDAQ:NOIZ) made a little money last quarter and paid its executives a little less last year.The Hudson supplier of microwave and radio frequency components and integrated subassemblies to defense contractors, reported earnings of almost a half-million dollars (11 cents per share) for its first quarter of fiscal 2011 (which ended on June 26), compared to breaking even in last fiscal year’s first quarter, according to earnings released on Tuesday. As a result, the company has almost $300,000 in cash ($772,000) and stockholders’ equity is up to $13.8 million, almost a half-million increase.The main reason? Sales were up 18 percent to $9.4 million, but the company also cut expenses through reduced interest payments on its debt, lowered executive compensation by $53,000, and cut back about $77,000 on audit and legal fees. Last year, the company also lowered compensation, according to its proxy filed with the U.S. Securities and Exchange Commission last week. CEO David Robbins ended up making $259,000, which was about $21,000 less than last year, mainly due to a lower bonus. President Kevin Beals’ package was worth $216,000, which was $100,000 less than the previous year due to a lower bonus and no stock options awards. CFO Carl Lueders made $309,000, which amounted to $41,000 more, even though his base salary went down, thanks to $65,000 in option awards. This year, Robbins’ base salary went up $35,000 to $200,000, but it promises to be a good year. In addition to a strong first quarter, backlog increased $1 million to $31 million on approximately $10 million of bookings for the quarter.However, the defense contracting business can be precarious. Micronetics serves all the major contractors, ranging from BAE Systems to Boeing, but it has become increasing dependent on ITT Electronic Warfare systems, according to its quarterly filing with the SEC. ITT accounted for 31 percent of the company’s sales and 37 percent of its accounts receivable. –BOB SANDERS/NEW HAMPSHIRE BUSINESS REVIEW

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