Eagle Computer Inc., a struggling Garden Grove personal computer maker, Tuesday posted a net loss of $1.6 million for its fiscal 1985 third quarter, a marked improvement from the $9.9-million loss reported a year earlier. Sales for the period ended March 30 were $2.5 million, down 75% from year-ago revenues of $10 million. The company, which moved its headquarters to Orange County from Northern California last fall, has been streamlining its operations to stay afloat in the fiercely competitive computer industry. Earlier this month, Eagle announced it was moving 80% of its manufacturing operations to Korea to take advantage of lower labor costs.
In a statement released Tuesday, Gary Kappenman, Eagle’s president and chief executive officer, said the company’s goal is “to return to profitability later this calendar year.
In the second quarter, Eagle shipped $4.1 million worth of products to the People’s Republic of China, but there were no shipments to China during the third quarter. Gross shipments to domestic dealers increased 35% over the second quarter, from $1.4 million to $1.9 million. “The results of the third quarter reflect a continued rebuilding of our domestic distribution,” said Kappenman.
The company, which employs 83, plans to reduce its manufacturing work force but increase its administrative, sales and marketing staff in the next two to three months, according to a company spokesman.