Micro D Reports 3rd Quarter Loss

Blaming tough competition, Micro D Inc., a Santa Ana-based computer products wholesaler, reported a third-quarter loss of $631,000 on sales that dipped 3% from the year before.

For the period ended Sept. 30, the company had sales of $27.4 million, compared with $28.4 million last year. In the year-ago period the company had a profit of $398,000.

For the first nine months of 1985 the company reported a net loss of $1.3 million compared with a profit of $1.2 million last year. Sales for the three quarters were $75.2 million, down 8.7% from the $82.4 million recorded last year.

Linwood A. Lacy Jr., Micro D’s chairman and chief executive, said the company had expected the third quarter loss and projected that the fourth quarter would be profitable. Lacy said the losses in the third quarter stemmed from “intense” competition from other distributors which drove down prices.

However, in a prepared statement Lacy said the company has taken steps to increase its profit margins and those measures are expected to result in a profitable final quarter of 1985.