Computer Memories’ Sales Soar

Computer Memories Inc., the Chatsworth-based disk-drive manufacturer, reported record sales of $50.5 million for its first quarter ended June 30, up from $19.1 million during the same period last year. The company also reported record profits for the quarter of $4.8 million, or 43 cents a share, up from $948,000 for the same period last year.

During its fiscal year ended March 31, Computer Memories lost $3.8 million on $108.7 million in sales, but showed a last-quarter profit of $2.6 million.

Company officials attributed the improvement to increased sales of the company’s high-capacity drives and to savings from shifting production to Singapore. Because of that shift, Computer Memories two weeks ago fired 177 workers at its Chatsworth plant.

Zenith National Insurance Corp. of Encino reported net income for its second quarter ended June 30 of $2.3 million, or 20 cents a share, a 48% decrease from the corresponding period last year. Operating income was $470,000, or 4 cents a share, down 87% from the second quarter of 1984.

Net loss for the six months ended June 30 was $288,000, or 3 cents a share, contrasted with a net income of $9.4 million for the corresponding period last year. Operating loss for the half year was $2.8 million, or 25 cents per share, contrasted with operating income of $8.1 million for the corresponding period last year.

Goran Ryden, senior vice president and treasurer, said the company’s poor first-half performance was attributable to an unusual number of claims.

The company last week announced acquisition of Cal-Farm Life Insurance and much of the business of Cal-Farm Insurance. Zenith, which specializes in worker compensation insurance, also announced it is forming a subsidiary, Cal-Farm Insurance Co.

For details and reports of other companies, see tables on Page 17.