Hytek 2Q loss widens

Hybrid circuit maker Hytek Microsystems, Inc.

last week said it expects its revenues to grow in the second quarter, ending June 28, while its losses continue to widen.

John Cole, the Carson City company's president and CEO, said the higher than expected second quarter loss is due to the accounting requirement to record the full liability with regard to its severance agreement with former CEO Chuck Byrne.

Revenues in the second half of the year are expected to be somewhat better, and the company expects to realize a small profit or break even in the third and fourth quarters.

For fiscal year 2003, Hytek said revenues should reach approximately $10.3 million, with a smaller loss than in fiscal year 2002.

"The company expects growth over the long term, in both military and medical markets, while commercial and optical market segments are expected to remain flat with little improvement through 2003," said Cole, in a prepared statement.

"Hytek has successfully negotiated its debt restructure with Bank of the West, and has signed an agreement with the bank converting the previous line of credit to a one-year term loan."

The company said its cash position remains adequate and provides for the continued reduction of its debts.

Hytek management said its cash position will be sufficient to continue through fiscal year 2003.