DWI Reports Net Loss of $51,589 for 2nd Quarter

Even after cutting the number of its employees by almost one-third, DWI Corp. posted a net loss of $51,589 for the second quarter of its fiscal 1986, compared to a $33,940 loss a year earlier. For the first half of the current fiscal year, DWI reported a loss of $233,347, mainly from its Inotek product development subsidiary, of which the company is the 95% owner. For the same period last year, DWI lost $90,456. Revenue for the second quarter was $665,806, down 27% from $914,489. First-half revenue totaled $1.3 million, down 28% from $1.8 million.

DWI, an Irvine industrial design firm, posted $25,076 in operating profits from its wholly owned design unit during the second quarter. But for the first half, the Design West unit showed an operating loss of $73,422. Arthur W. Ellsworth, vice chairman and co-founder of DWI, said the gain in operating income in the second quarter resulted from laying off 15 of the firm’s 47 employees.

DWI, which chose to list its 95% share of Inotek’s losses separately from its Design West business, said those losses totaled $57,438 during the second quarter, compared to a $44,574 loss during the same period last year. DWI’s share of the subsidiary’s losses totaled $126,118 for the first half, compared to $44,574 a year earlier.

“In terms of a third quarter,” Ellsworth said, “we’re hoping to break even. But I don’t think we can get it turned around 100% by the end of the year.”