Somewhere, someplace, H. VandeWettering is smiling:

Continued cost-cutting and wider profit margins helped Peco II Inc. dramatically reduce its red ink in the second quarter.

The Galion-based communications power systems maker said Thursday that it lost $240,000, or 8 cents a share, in the second quarter, compared with a loss of $1.23 million, or 45 cents a share, in the same period last year.

Revenue in the second quarter fell 10 percent to $9.93 million from $11.1 million on a 24 percent sales decline to $6.43 million in Peco’s larger products segment. The company’s services business, however, grew sales 37 percent to $3.49 million.

Peco said profit margins widened for both businesses during the quarter, but the services segment was bolstered by a major contract awarded in the fourth quarter.

The company also has been working to cut operating expenses, which declined 15 percent during the quarter.

Peco (NASDAQ:PIII) in the first half lost $1.86 million, or 65 cents a share, compared with a loss of $2.62 million, or 95 cents a share, last year. First-half revenue fell 13 percent to $17.4 million from $20.1 million.

The company last year lost $7.7 million on $41.7 million in revenue.