Computer Automation is holding merger talks.

Company Chairman George Pratt confirmed that the firm is holding “preliminary” merger talks with Everett/Charles Test Equipment of Pomona, Calif. However, Pratt said in a prepared statement that “it is still too early to know whether any agreement between the companies will result” from the discussions that began in mid-December. On Monday, Everett/Charles Chairman Jerry Hudspeth said the two companies had reached a tentative agreement to merge their operations, a move that could end months of financial uncertainity for Computer Automation of Irvine.