Kaypro’s Net Falls Sharply in Quarter, Six Months

Kaypro Corp., Solana Beach, reported net income for the second quarter ended Feb. 28 of $84,477 on sales of $18.6 million, while net income for the six months was $157,349 on sales of $43.9 million. Last year, the company reported net earnings of $4 million and $6.8 million for the second quarter and six months, respectively, ended Feb. 29, 1984. Revenue for those periods was $35.5 million and $64.8 million, respectively.

The computer maker cautioned, however, that a comparison between this year’s figures and last year’s should not be made because of various fiscal adjustments in fiscal 1984--including write-downs for missing inventory--that substantially reduced Kaypro’s gross operating margins.

Kaypro has not calculated how the reduced margins affected earnings.

However, gross operating profits of $8.2 million and $13.4 million in the second quarter and six months of 1984 were slashed to only $1.9 million and $2.6 million, respectively, company filings show. That compares to operating profits for the second quarter and six months ended Feb. 28, 1985, of $221,256 and $783,025, respectively.