Wespercorp Sells Lease to Post Slim Gain

By selling the lease on its Tustin headquarters, financially troubled Wespercorp managed to post a profit of $281,000 on lower revenues for the first quarter, ended Sept. 30, reversing its $258,000 net loss for the same period the year before.

Officials at Wespercorp, a maker of computer peripherals, had delayed releasing operating results for the quarter while it negotiated a bail-out with its bankers and note holders.

Also Monday, the company reported a $11.4-million loss for its 1984 fiscal year, ended June 30. Wespercorp also had delayed posting those results, pending the outcome of the negotiations.

Without the $822,000 brought in by the lease sale, Wespercorp would have posted a $540,000 first-quarter loss, company officials said. Quarterly revenue slumped 4.2% to $3.3 million, from $3.5 million for the year-ago period.

Wespercorp’s fiscal 1984 loss compares to a loss of $3.6 million for fiscal 1983. Revenues for the 12 months were off 17%, to $13.5 million, from $16.3 million in the previous year.

Company officials declined to estimate financial results for the most recent quarter, which ended Dec. 30.

Company officials attributed the growing losses to reduced sales, costs to discontinue a line of personal computer products and a loss on the sale of its utility billing subsidiary. The company also took a writedown on inventory of mini-computer systems.

In December, the company reached an agreement with its main creditor, Union Bank of Los Angeles, to restructure its payments of $4 million in outstanding debt. The bank also extended Wespercorp a $2-million line of revolving credit.