Compact Video Narrows Its Eight-Month Losses
Compact Video narrowed its loss to $107,000, or 2 cents per share, in the eight months ended Dec. 31, from a loss of $4 million, or 94 cents per share, during the corresponding period a year earlier.
The recent loss was the result of an extraordinary charge taken for a reserve Compact Video established because of a class-action suit. The case, which recently came to a tentative settlement, was filed by investors who alleged that the company overstated its earnings and inflated its stock price in the early 1980s. The company’s income before the charge was $422,000, or 10 cents per share.
Compact Video, a Burbank video and film services company, reported eight-month results because it changed its fiscal year to end on Dec. 31 instead of April 30.