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Commodore Has Profit for 3rd Straight Period

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Commodore International Ltd., the reviving home computer manufacturer, reported its third straight profitable quarter and said it reduced bank debt and inventories in the second fiscal quarter.

Commodore, with headquarters in West Chester, Pa., makes the 64C, 128 and Amiga microcomputers as well as a new line of IBM-compatible machines.

The company said it made a profit of $21.8 million in the traditionally strong Christmas quarter ended Dec. 31, including a one-time tax related gain of $5.8 million, compared to a loss a year earlier of $53.2 million.

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Revenue slumped, however--down 20% to $270.8 million from $339.2 million a year earlier. The revenue was at planned levels “as the company managed for profitability and cash flow” rather than growth, Thomas Rattigan, Commodore’s president and chief executive, said in a news release.

“Trying to build for a very, very large Christmas season, given the financial position of the company, would not have been the right thing to do,” Michael Evans, chief financial officer, said in an interview.

For the first half of its fiscal year, the period ended Dec. 31, Commodore reported a profit of $25.5 million, including the $5.8 million tax-related benefit, compared to a $92.4 million loss a year earlier.

Revenue for the half-year fell 10% to $446.8 million from $498.4 million.

Evans said Commodore hopes to complete within a week a new agreement with its bankers on a $140-million revolving line of credit. It fell into default on stipulations of its earlier agreement. Commodore said as early as three months ago that it expected to complete the new agreement soon, but Evans said it was delayed by paper work.

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