After Laying Off 30, Distributed Logic Corp. Reports Loss of $2.2 Million
Distributed Logic Corp. of Anaheim on Tuesday reported a loss of $2.2 million for fiscal 1988, its second annual loss in a row, and disclosed that it has laid off 30 workers.
The layoffs were mostly confined to the computer equipment maker’s Anaheim plant and constituted a 10% reduction in its work force nationwide, said Sam M. Auriemma, Distributed Logic’s chief financial officer.
In addition to last week’s layoff, “throughout the year there’s been reduction in redundant positions” at the company, Auriemma said. “I have no idea how many jobs, but this (cutback) is the largest since I came here in April.”
Distributed lost $2.2 million in fiscal 1988, which ended Oct. 31, compared to a loss of $385,072 in fiscal 1987. Revenue for the year rose to $51.2 million, a threefold increase from the $15.8 million posted in fiscal 1987.
The company lost $1.9 million in the fourth quarter of fiscal 1988, compared to about $1.3 million lost in the same period in the previous year. Revenue, however, rose to $11.3 million, double the $5.6 million reported in the fourth quarter of fiscal 1987.
Glenn C. Salley, company president, chairman and chief executive, called 1988 a “year of transition” and said Distributed Logic’s results “reflect a difficult and disappointing period.”
“In addition to anticipated operating losses,” Salley said in a prepared statement, “we were adversely impacted during the year by a write-down of inventory and other reserves that totaled $591,000, and by severance costs of approximately $500,000, which produced an operating loss . . . of $1,652,925.”
Salley and Auriemma attributed the 1988 loss to the company’s acquisition of Plessey Peripheral Systems Inc. in October, 1987, and to significant research and development throughout the year.
“It took much longer than anticipated to integrate the operations of the Plessey groups, which we acquired a year ago, but we feel that this process is nearing completion,” Salley said. “As we complete the digestion of the Plessey business, we expect to see improved operating results during the second half of fiscal 1989.”
Auriemma said that no more layoffs are in sight right now but that Distributed might consolidate or close some of its 25 field services offices.
