Earnings Increase 90% at Computer Memories
Computer Memories said its earnings rose 90% in the second quarter ended Sept. 30 to $2.8 million, or 25 cents a share. Revenue rose nearly 30% to $39.2 million.
The Chatsworth-based company, which makes disk drives for personal computers, said it expects lower third-quarter profits and revenue as its contract with IBM winds down. IBM announced in August that it will not extend the contract, which has accounted for about 80% of Computer Memories’ business, beyond Dec. 31.
Computer Memories said its backlog of orders to be shipped within six months was $25 million on Sept. 30, down 62% from the level of June 30. IBM’s orders make up 78% of the backlog, the company said.
For the six months ended Sept. 30, Computer Memories’ earnings increased 215% to $7.6 million, or 69 cents a share, and revenue climbed 82% to $89.7 million, the company said.