Archive Cites Expansion Costs as Profits Drop
Despite a significant increase in sales, Archive Corp., a Costa Mesa computer parts maker, reported Monday that profits plunged dramatically in the final quarter and full year because of costs incurred in the expansion of its manufacturing plants.
For the period ended Sept. 27, profits were $238,000, down 21% from the $687,000 recorded last year. Revenues in the quarter were $17.7 million, up 65% from $10.7 million.
For the record:
12:00 AM, Nov. 27, 1985 FOR THE RECORD
Los Angeles Times Wednesday November 27, 1985 Orange County Edition Business Part 4 Page 2 Column 6 Financial Desk 1 inches; 26 words Type of Material: Correction
For the fourth quarter ended Sept. 27, Archive Corp. of Costa Mesa earned $538,000. The company’s fourth quarter profits were incorrectly reported in Monday’s edition of The Times.
For the full year, Archive’s profits were $1 million, down 44% from $1.8 million. Revenues of $57.8 million were up 51% from $38.2 million in 1984.
Although disappointed by the decline in profits, Archive executives said the expansion of the Costa Mesa and Singapore manufacturing plants will allow the company to resume what Chairman D. Howard Lewis called “a steady improvement in profitability.”
Lewis, who also is Archive’s chief executive, said that despite the industry-wide slowdown in computer sales, the company contracted in its 1985 fiscal year to deliver more than $100-million worth of its products. The company manufactures streaming tape drives, the tape recorder-like devices that are used to store information in computers.