Computer Firm Reports Losing $6 Million in Year

Computer Automation Inc. said Friday it lost $6 million in the fiscal year ended June 30, and the firm’s chairman said the losses “have seriously affected the company’s cash flow.”

The company, which manufactures automatic test equipment and minicomputers, said it also expects to report a loss for the first quarter of fiscal 1990, which ended Sept. 30. Computer Automation was late in reporting its year-end financial figures, but said results for the first quarter will be released shortly.

The firm, which has been in financial straits for the past two years, said its revenue for fiscal 1989 fell to $6.4 million, down 10.6% from $7.1 million a year earlier. The loss for the recent year compares with a $1.3 million loss in the prior year.

Computer Automation’s efforts to raise badly needed cash were dealt a blow recently when a deal to sell its automatic test business to Technology Marketing Inc. of Irvine for $4.1 million fell through.