Kaypro Posts $788,000 Gain for 2nd Quarter

Riding a wave of consumer interest in its new 16-bit PC that pushed revenues to $20.4 million, Kaypro Corp. reported a $788,000 profit for the fiscal second quarter ended Feb. 28.

Kaypro reported a $2.5-million loss and $14 million in revenues during the first quarter ended Nov. 29.

Revenues jumped 45% over first-quarter sales of $14 million and $10% over the second quarter a year earlier. That second-quarter revenue surge was generated by strong sales of the company’s newer 16-bit computers, according to Kaypro Chairman Andrew Kay, who described the company balance sheet as “strong with $31 million of current assets compared to $16 million of current liabilities.”

During the past month, Kaypro stock--which had been stuck around $1.25 for the past year--shot up to a yearlong high of $4 before falling back to about $3. At the time, company officials credited the stock upswing to several computer magazine reviews that lauded the new 16-bit computers.

Computer industry analysts, however, suggested that Kaypro might be returning to profitability after a $15.5-million loss during the fiscal year ended Aug. 31 and a $2.5-million loss during the first quarter.