MAI to Trim 400 Jobs, Predicts Big Loss Due to Failed Prime Bid

A day after giving up its protracted fight for Prime Computer, MAI Basic Four said Friday that it will report a “significant loss” for its latest quarter and will slash 400 jobs worldwide as part of a major reorganization.

The Tustin-based computer company blamed the loss primarily on $25 million in expenses for its ill-fated hostile takeover bid for Prime, a Natick, Mass., computer company that agreed to be bought by the New York venture capital firm of J. H. Whitney & Co.

MAI officials said a downturn in the market for mid-range computers also contributed to the loss, which it did not specify. Subtracting the takeover and restructuring expenses, the company said it expects to report an operating loss of $5 million to $6 million for the quarter. Fred D. Anderson, chief financial officer, said the firm expects to post a loss in the current quarter and to return to profitability in the first quarter of next year.

MAI said the reorganization, which is expected to save up to $30 million annually, isn’t related to the bid for Prime and will result in a charge of $13 million to $15 million for the second quarter.