$21-Million Loss in Quarter Negates Tandon’s ’88 Profit

Tandon Corp., struggling with high advertising costs, soft sales and shortages of chips for its personal computers, lost $21.1 million in the fourth quarter that ended Dec. 31, wiping out the company’s profit for all of 1988.

In the year-earlier quarter, the Moorpark-based maker of personal computers earned $6.3 million from its continuing operations. For all of 1988, Tandon lost $19.9 million, compared to a $17.1-million profit from its personal-computer business a year earlier.

Tandon’s sales in the fourth quarter fell 5% to $90.3 million. For all of 1988, Tandon’s sales increased 7% to $309.3 million from $289.1 million in 1987.

Tandon said European sales, which account for more than 80% of the company’s revenue, recovered from a soft summer period. But Tandon said it was hurt by shortages and high prices for computer chips, which are the “brains” of the personal computer. In addition, Tandon said it was hurt by heavy marketing and advertising costs as part of an effort to increase its share of the market.