EIP Microwave Inc.

EIP Microwave Inc. reported Tuesday net profits, buoyed by increased sales, rose 26% in the first quarter to $402,000 from $320,000 in the same period a year ago.

The Newport Beach-based firm, which makes microwave test and measurement instruments, posted revenues of $5 million for the three-month period, ended Dec. 31, a 21% increase from $4.1 million in the same period in 1983.

Included in first-quarter results is approximately $200,000 in pre-tax earnings that EIP vice chairman Mark K. Howlett said came from accounting changes and the elimination of a marketing reserve fund established in a prior quarter.

Howlett said the one-time gain does not mean the company had lower operational profits than in the same period last year because the $200,000 was re-invested in the company, increasing expenses for the quarter.