Trans-Lux Corp. posted another fourth-quarter and annual loss, prompting its auditor to flag the viability of the Norwalk maker of digital big-screen stock tickers, sports displays and billboards.
The 91-year-old company’s CEO counters that its first-quarter new orders are up “substantially” amid other steps under way to revitalize its business model.
For the three months ended Dec. 31, 2010, Trans-Lux lost $1.8 million, or 75 cents a share, smaller than the $3.1 million, or $1.31 a share, loss the same period in 2009.
For all 2010, Trans-Lux lost $7.1 million, or $2.91 a share, narrower than the $8.8 million, or $3.81 a share, lost the same period in 2009.
Nonetheless, the company said its independent auditor issued a qualified opinion raising doubts about Trans-Lux’s ability to continue as a going concern.
“We are concentrating on our long-term sales and marketing objectives in the LED digital signage market and lighting, while continuing our efforts to strengthen our financial position through on-going restructuring efforts,” President and CEO J.M. Allain said in the earnings statement.
 “We are taking measures to capitalize on new business opportunities and have already secured several substantial new orders during the first quarter …,” Allain said.
Contributing to its latest loss, Allain said, was a $1.1 million restructuring charge, along with a $50,000 write-off related to engineering software.
The result was 2010 earnings before interest, taxes, depreciation and amortization (EBITDA) of a negative $161,000 vs. a negative $1.1 million in 2009, he said.
Without charges and write-offs last year and the one before, Trans-Lux’s 2010 earnings would have been a positive $1.4 million vs. a positive $1.6 million in 2009, the company said.
