Eagle Computer Reports $2-Million Quarter Loss

Eagle Computer Inc., whose financial condition has been deteriorating steadily for the last two years, said Friday that it lost $2 million in its third quarter, bringing total losses over the last 36 months to more than $41 million.

For the period ended March 29, the Garden Grove-based computer maker had sales revenue of $816,000, 67% below the $2.5 million posted last year, when the company lost $1.6 million for the three-month period.

As in previous quarter-end announcements, Eagle president and founder Gary Kappenman said the company’s ability to remain in business depends upon finding an investor, merger partner or outright buyer.

In addition, Kappenman said Eagle’s fate also hinges on “the forebearance” of its major lender, the Bank of America, as well as its scores of unsecured creditors, many of whom have already accepted stock worth about 25 cents a share in lieu of full payment.

Kappenman said the company is in default on its loan with the Bank of America and has been unable to meet past due obligations to its unsecured creditors. He said the company has 17 full-time employees and five part-time workers, down from 86 full-time employees at the end of 1985.

Kappenman said that although the company has spoken to several potential investors, he has no “substantial” negotiations in process and can offer no assurance that an investor will be found.