Kaypro’s Net Slips to $72,872 in 1st Quarter

Stung by increased competition and shrinking profit margins, Kaypro Corp. on Friday reported earnings of only $72,872, or about 0.2 cents per share, on sales of about $25.2 million for the first quarter ended Nov. 30, 1984.

In the first quarter of fiscal 1984, the Solana Beach, Calif.-based computer maker reported net income of $2.8 million, or 8 cents per share, on revenue of $29.2 million.

Officials warned, however, that quarterly comparisons between 1983 and 1984 are misleading because of a series of write-downs for missing inventory and other adjustments made in the fourth quarter ended Aug. 31, 1984, which affected prior quarters.

Writing in its 10-Q statement, which will be filed Monday with the Securities and Exchange Commission, Kaypro said it has lowered its estimated gross profit margins from 40% during the first nine months of fiscal 1984 to less than 26% in the last two quarters.

Kaypro is keeping relatively quiet about its performance and its adjustments for missing inventory, according to spokeswoman Margaret Phanes, because of a shareholders lawsuit filed against Kaypro last fall. The suit charged the company with misrepresentations and material omissions in its August, 1983, initial public offering registration.