General Automation Posts Profit After Years of Losses

On the mend from its financial woes of earlier this year, General Automation Inc. reported Tuesday that it earned $126,000 in its latest quarter but still lost money for fiscal 1989.

General Automation, an Anaheim-based supplier of computer systems, software and related services, lost $1.6 million for the year ended June 30, compared to a loss of $11 million in 1988. Revenue fell 19%, to $41.4 million, down from $50.9 million a year ago.

The company, however, reported profits during the last six months of its year after reporting heavy losses in 1988 and during the first half of 1989.

In January, British-based Sanderson Electronics PLC agreed to provide $4 million in financing to General Automation in exchange for stock, warrants and notes that would give Sanderson up to a 51% stake in the company. Sanderson now holds about 35% of the firm.

General Automation’s fourth-quarter earnings of $126,000 compare to a whopping loss of $8.8 million in the year-earlier period. Revenue, however, dropped 27%, to $10.2 million from $13.9 million.