180 California Amplifier Employees to Be Laid Off
California Amplifier, which makes components for satellite dish antenna systems, will dismiss 180 workers--nearly three-quarters of its work force--because of continuing losses and an industrywide slowdown.
The cutbacks, which will close most of California Amplifier’s manufacturing operations while leaving the engineering and distribution units intact, will trim the Camarillo-based company’s employment to 70 by March 31.
California Amplifier also announced last week that it expects significant operating losses in the fourth quarter and fiscal year ending Feb. 20. It did not disclose specific projections.
The company said it will try to arrange partnerships, licensing agreements or similar arrangements to continue supplying equipment for home satellite systems.
David Thorpe, vice president for sales and marketing, said California Amplifier will continue making components for military and industrial satellite-dish antenna systems, including radar and missile-tracking systems.
He said the military and industrial markets traditionally have accounted for about 25% of the company’s sales but their share is expected to grow.
The home satellite-dish industry has been shaken in recent months because of plans by pay-television channels to scramble signals. Many satellite-dish owners have viewed pay channels at home at no cost. But with signal scrambling, they will have to buy descramblers and pay monthly fees.
Home Box Office and Cinemax, two leading pay-television services, began altering signals Jan. 15. Thorpe said the result has been a slowdown in sales of satellite-dish equipment for home use.
Even before that development, California Amplifier was struggling. During the nine months ended Nov. 30, California Amplifier lost $1.1 million, a reversal from a profit of $787,000 in the same period a year earlier. Sales for the nine months were off 29% to $11.2 million.
California Amplifier’s main product is a small, boxlike component that magnifies the weak signal bounced off a satellite. The amplified signal is then sent to other components, which process it to be shown on a television screen.
