Struggling Rosscomp Gets Emergency Loan

Signaling a deepening of its money woes, Rosscomp Corp. said Friday that it has “a severe and immediate” cash problem, the second such announcement from the Costa Mesa computer parts maker in the last three months.

In a terse statement, the company, which has lost nearly $7 million in the last two years, said it received $20,000 earlier in the week from one of its investors to cover immediate cash requirements. Company executives, the announcement continued, would be in discussions throughout the weekend in the hopes of finding additional financing.

The company also said James Fosberg had resigned as chief executive and president, less than 45 days after taking the two posts. Gerhard Rotter, Rosscomp’s chairman and former chief executive, has temporarily assumed Fosberg’s duties. Company officials could not be reached for comment Friday.

Rosscomp’s latest announcement indicates that despite efforts since the beginning of the year, the 3 1/2-year-old company is still struggling to gain its financial footing in the competitive computer memory market.

In April, the company laid off 17 of its 55 employees and dropped one of its principal products, an 8-inch tape drive, a piece of computer “backup” equipment that records on magnetic tape information also recorded on the computer’s disc. The company’s product line now consists of a 5-inch tape drive that uses a half-inch magnetic tape.

However, according to Ray Freeman, a Santa Barbara computer market analyst, computer manufacturers have shunned Rosscomp’s product because it is unique and does not work with other magnetic tape products already on the market.

“Just like you like to buy standard tapes for your car stereo, computer makers like mainstay, standard products,” Freeman said.

For fiscal 1984 ended Nov. 30, the company posted a net loss of $3.8 million, compared with a loss of $2.4 million the prior year. Revenues dropped 40%, to $383,000 from $632,000.