Kaypro Corp. Reports 2nd-Quarter Loss

Blaming a host of problems, including component shortages, production miscues and unit price decreases, Kaypro Corp. reported a net loss and a 32% drop in sales for the second quarter ended Feb. 26.

Kaypro’s second-quarter loss was $2.2 million on sales of $19.5 million, contrasted with a profit of $852,000 on sales of $28.9 million over the same quarter last year.

The drop in sales was attributed in a prepared statement by its chairman, Andrew Kay, to decreases in sales of custom computers. Discounts were offered to dealers, cutting into Kaypro’s sales and profits, Kay said.

Kaypro also had “engineering and production problems” with its Kaypro 2000 laptop computer model. The firm also experienced difficulty procuring adequate supplies of semiconductors, which slowed shipments of its Kaypro 286 lines.

For the six months ended Feb. 26, Kaypro reported a loss of $2.8 million, contrasted with a profit of $2.1 million over the same two quarters last year. Sales were $42 million, down 29% from the $58.8 million in year-ago sales.