Alpharel Lays Off 19, Cuts Assets’ Value

Alpharel Inc., an ailing producer of computer equipment, cut its work force by 32% and wrote down the value of certain inventory and other assets as part of a restructuring.

The Camarillo-based company, which laid off 19 of its 59 workers, said it would take a $3.6-million charge against its fourth-quarter 1989 earnings to cover restructuring costs.

Alpharel also said it hired the investment banking firm Houlihan, Lokey, Howard & Zukin Capital in Los Angeles to find a possible buyer or partner for the company as a way of boosting Alpharel’s financial health. Alpharel’s financial troubles have eaten away most of the company’s cash. As of Sept. 30, the company had cash and equivalents of $1.8 million, down from $9.4 million in December, 1988.

Alpharel, which lost $7.07 million on revenue of $3.37 million in the nine months that ended Sept. 30, said last month that it had contacted other parties about a possible merger but had not received any serious indications of interest.