General Automation said Monday that it lost $11 million for its fiscal 1988 ended June 30, including an $8.9-million loss in the fourth quarter.
The Anaheim computer manufacturer said revenue for fiscal 1988 rose 19% to $50.9 million, from $42.8 million a year ago.
General Automation had a profit of $1.6 million in fiscal 1987.
The company also disclosed that it is having difficulty generating enough cash from operations to meet expenses. The company’s accounting firm, Coopers & Lybrand in Newport Beach, has told the firm that its auditing report for 1988 may include a statement reflecting “concern regarding the company’s financial viability unless additional capital is obtained.”
General Automation said it is “working toward improving cash flow, reducing expenses and bringing in working capital.”
For the fourth quarter, General Automation posted a loss of $8.9 million, contrasted with earnings of $1.3 million a year earlier. Revenues were $13.9 million, up 6% from $13.1 million.
The company said its 1988 earnings were affected by:
- A $3.8-million write-off of expenses associated with the sale of its Parallel Computer subsidiary to Integrated Micro Products of Britain.
- A $1.9-million write-off for a management reorganization last August in which Leonard N. McKenzie quit his positions as chairman, president and chief executive to become the firm’s vice president. At the same time, company director Alexander W. Giles was named chairman, and Michael J. O’Donnell, also a director, was named president and chief executive.
- $1 million in costs “related to the settlement of lawsuits.” Marie Ann Meyer, a company spokeswoman, would not discuss details of the suits, except to say the firm is involved in “several unrelated” suits in the United States and Europe.