ENDOTRONICS <ENDO> EXPECTS LOSS FOR YEAR Endotronics Inc said it expects to incur "substantial losses" for the second quarter ending March 31 and fiscal year ending Sept 30, 1987. As one factor behind the anticipated loss, Endotronics cited a dispute by one of its Japanese distributors, <Yamaha Inc>, over payment of a 3,686,000 dlr promissory note. In a Form 8-K filing with the Securities and Exchange Commission, Endotronics said the note was for overdue accounts receivable from sales of instruments to Yamaha and another Japanese distributor during the company's 1986 fiscal year. Endotronics said at its present reduced level of operations it will exhaust all currently available cash and credit facilities in early May 1987. It said this assumes full use of the remaining 1,250,000 dlrs available under a line of credit from Celanese Corp, which requires approval of Celanese Corp <CZ>. The company said its ability to obtain funding was adversely affected by a suit filed March 4 by two of its shareholders seeking to represent a class of holders against three officers of Endotronics. Endotronics said the complaint against it alleges violations of the federal securities laws in connection with statements made in the company's annual and quarterly reports. The company also said the Securities Division of the Minnesota Department of Commerce is conducting an inquiry into the company's Japanese sales for fiscal 1986 and trading by insiders and brokers in the company's common shares. It said similar inquiries are being conducted by the Securities and Exchange Commission. The investigations will hurt the company's ability to obtain funding, it said. As a result of the dispute over payment of the promissory note, the law suit challenging its financial data and the various investigations concerning insider trading, the company said it no longer expects that anticipated declines in instrument sales in Japan in fiscal 1987 will be offset by increased instrument sales in other foreign countries and the United States.