National Micronetics to Move Operations to New York Plant
National Micronetics, which anticipates a $7-million net loss for the fiscal year ended June 28, will transfer its headquarters from San Diego to its main manufacturing plant in Kingston, N.Y., company officials confirmed Friday.
The company also reported that President Ned Buoymaster, who co-founded the firm in Kingston in 1969, had resigned as president and director, effective July 14. Charles J. Lawson, a board member who in April assumed the chairman’s role from Buoymaster, will serve as chairman and chief executive.
National Micronetics, which has generated more than $50 million in net losses during the past two years, also announced that it intends to sell its Semi Films Division in New York to “reduce debt and provide working capital.” Semi Films manufactures thin film resistor networks for the electronic circuit market.
Although National Micronetics slashed overhead in the wake of last year’s $44.6-million net loss, industry analysts said that sales have been slow to rebound, largely because foreign producers are undercutting the company on pricing.
Although a non-recurring charge to cover the consolidation in Kingston accounted for $2 million of the net loss, Chief Financial Officer Eric W. Markrud said that continuing operations accounted for $5 million of the loss.
“It’s been a tough year,” said Markrud. “But we’re encouraged by the market outlook right now. I’d hesitate to make predictions, but we believe we’ve reduced overhead costs to a better-than-break-even basis during 1987.
“We’re in a competitive market that is (price sensitive). We’ve gone through a turnaround and we believe we’re back on our feet.”
About half of the company’s 60 headquarters employees will move to Kingston, Markrud said. A 30-person sales, technical support and administrative staff will remain in San Diego.
National Micronetics, which produces recording heads used in computer drives, employs more than 600 employees at its Kingston plant and an additional 1,000 at a plant in the Philippines.
