Communications Systems Ltd. more than $8 million in the red in the third quarter, the Bermuda-registered technology company said.

Intelect exeutives said blamed the deficit -- on revenue of $2 million -- on the company's move into commercial markets and away from military and government markets.

"Revenues from traditional sources have been materially depressed with virtually no contributions to current year operations,'' Intelect said.

"As we bring products to market, late third quarter and early fourth quarter developments are supporting forecasts for major sales gains and profitable operations in 1997,'' said Intelect chairman Herman Frietsch said.

For the three months ended September 30, Intelect lost $8.5 million on revenue of $2 million compared to a $428,000 loss on revenue of $1.2 million in the prior year's third quarter.

For the nine months, losses totalled $15.4 million on revenue of $7.6 million compared to a $73,000 profit on revenue of $1.9 million.