Proclaiming that it has completed a successful turnaround, Micro D Inc. announced record profits of $3 million for 1986 on sales that surged 84% above those of the previous year. Although the company has posted four consecutive quarterly profits, the full-year earnings were the first since 1984. The company lost $3.1 million in 1985.
The Santa Ana micro computer and software distributor posted 1986 sales of $221.4 million, compared to $119.8 million in 1985.
For the final quarter, profits were $1.2 million, contrasted with a loss of $1.8 million for the same period the year before. Sales of $75.6 million were up 70% from the year-earlier $44.6.
"Micro D accomplished a major turnaround in sales and profits in 1986," said Linwood A. Lacy, Micro D's chairman and chief executive. Lacy said sales in early 1987 have remained strong, with prospects for "improved results for all of 1987."
Until the first quarter of 1986, Micro D had suffered five consecutive quarterly losses. Although the losses were in part due to the overall computer industry slump, analysts also blamed Micro D's previous management team for failing to guide the company through the downturn.
Lacy, former senior vice president of marketing for Best Products, was hired in July, 1985, to replace Micro D founders Lorraine Mecca and her husband, Geza Csige.