CompuSave Corp., the struggling Irvine video shopping-system maker, said Monday that it lost more than $1.3 million in its third quarter and that revenue fell to just $235,890--providing yet more evidence of the company's persistent financial problems.
The company lost its last major client during the quarter, which ended Feb. 28. Because the company has not published results for the year-ago quarter, a comparison to last year's performance was not available.
However, according to filings with the U.S. Securities and Exchange Commission, CompuSave lost $10.3 million between its inception in May, 1983, and Nov. 30, 1985. With the latest filing, reported losses now total $11.6 million.
Once a promising electronic discount retailer with a novel computerized video-shopping machine, CompuSave has fallen on hard, and worsening, times in the last six months.
Change in Plans
CompuSave's original business plan called for the company to sell its machines to supermarkets and convenience stores for the shopping convenience of their customers.
However, in December, after its retailing operations failed to attract customers, the company closed its sales business and attempted to convert its machines to video advertising devices for do-it-yourself stores.
Last month, CompuSave's major customer for the advertising devices--MarketDisc Corp. of Newport Beach--canceled its contract, citing alleged breach of obligations. At the same time, CompuSave said it would be unable to pay its preferred stock dividend due this month.
Despite the setbacks, CompuSave officials said last week that they intend to go ahead with a rights offering that could raise as much as $5 million. Officials said the company needs the money to repay its mounting debts and start a new line of business.