Datapower Reports $2.1-Million Quarterly Loss

Datapower Inc. reported a $2.1-million loss in its fiscal 1987 third quarter ended Dec. 31, more than six times the $346,000 loss reported for the prior fiscal year’s third quarter. The Santa Ana maker of power supplies for computers said that quarterly revenue dropped 38% to $1.2 million from $1.9 million.

For the first nine months, Datapower lost $3.2 million, more than three times the $898,000 it lost in its fiscal nine-month period last year. Revenue in the period fell 21% to $4.1 million from $5.2 million in the same period last year.

The company said that 70% of the $2.1-million loss was attributable to a $1.45-million write-down for lowering the value of its inventory. “We reviewed the balance sheet and felt those costs couldn’t be recovered” in a currently depressed market, said Michael McGlone, vice president of finance and chief financial officer, who added that the company may make similar adjustments in the future.