Computer Automation President Quits to Prepare Possible Acquisition of Unit

The president of financially ailing Computer Automation Inc. has resigned to prepare a possible acquisition of the company’s automatic test-equipment operations, which constitute two-thirds of its business.

Douglas L. Cutsforth, who also resigned as chief operating officer and as a director of the Irvine firm, said Thursday that he has not yet made a formal offer to buy the test-equipment business. He added that he is still trying to arrange financing for the deal.

“It’s a very good business and, with the proper financing, it could be a very successful business,” Cutsforth said in an interview.

The unit produces equipment used to test printed circuit boards used in computers and other electronic products. It has accounted for an increasing portion of the company’s business, growing from 36% of sales in fiscal 1986 to 66% in 1988.

For the fiscal 1988 year ended June 30, Computer Automation lost $1.3 million on sales of $21.5 million.

Earlier this month, Computer Automation announced that it will report a $2-million loss and significantly lower revenue for the third quarter ended March 31.

Computer Automation Chairman George Pratt said the company’s directors will consider any offer from Cutsforth or another party interested in acquiring part of the company.

Cutsforth is a former general manager of the test-equipment business. He had served as president and chief operating officer since late 1985.

Cutsforth said he is heading a group that includes several top managers of the test-equipment unit. Neither he nor the company would disclose the names of the managers.

Besides test equipment, Computer Automation also manufactures minicomputers and microcomputers for industrial applications, and data communications equipment through its Talon Technology subsidiary.