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Alpha Micro Splits Operations

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Times Staff Writer

To reflect Alpha Microsystems major areas of growth, the Irvine manufacturer of business computers has broken its operations into three parts.

Richard Cortese, president and chief executive, said Thursday that the company has created one division to make and market computer systems, another to service computers and a third to market equipment that allows computer data to be recorded on ordinary video recording tape.

Previously, the company had computer manufacturing, marketing and servicing divisions, which included video-recording equipment operations, he said.

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About 90% of Alpha Microsystems’ revenue comes from computer sales and about 10% from computer servicing and repair, Cortese said.

‘Growing Segment’

He added that the company does not know what portion of its revenues come from video recording and storage sales, however, because those numbers have been folded into computer sales.

“But we think it’s a growing segment and will produce a significant volume of revenues,” he said.

He pointed out that the reorganization has “nothing to do” with an 85% drop in earnings for the fiscal 1985 third quarter, which ended Nov. 25, and he repeated his earlier statement that the company expects its profit margin to increase to former levels in the fourth quarter, which ends Feb. 28.

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