General Automation Sees Sales, Earnings Drop

General Automation Inc. of Anaheim said its expects a drop in sales and earnings for its fiscal 1988 first quarter because orders for its computers plunged during July and August. Sales have since recovered, the company said.

Chairman Leonard N. Mackenzie said in a prepared statement that a “deeper-than-expected” downturn in orders is “expected to lead to poor results” when the company reports its first-quarter figures later this month. The company’s profits will also be adversely impacted by the cost that General Automation incurred in expanding its field-service operations and its Parallel Computers subsidiary, Mackenzie said.

General Automation said orders for the next six months are “up sharply” from the year-earlier period and that it expects “gratifying results” for the remainder of its fiscal 1988.