Computer Automation Halts Stock Offering

Computer Automation Inc. said it terminated a $3-million offering of convertible preferred stock because orders from current shareholders and employees fell short of the $1.5-million target.

The offering, which began in August, expired Friday.

As proposed by the Irvine-based company in June, shares not sold to current shareholders and employees would be offered to the public.

Computer Automation had hoped to use proceeds from the offering for working capital. A spokesman said the company believes that its current operating level, coupled with continuing payments from the sale of its commercial systems division, “will provide adequate cash flow, although tight cash flow positions may occur from time to time.”

Computer Automation sold the commercial systems unit in 1985 for $4.3 million in notes, payable in installments through 1991.

After three years of losses totaling about $20 million, Computer Automation has reported operating profits in its last two quarters. Orders are increasing, the company said, and a reorganization and consolidation has helped improve profitability.

The company makes automatic test equipment for the electronics industry.