Micro General Corp.: The Santa Ana-based shipping...

Micro General Corp.: The Santa Ana-based shipping and mail-room automation equipment company reported a sharp decline in net income for 1989 due to an engineering defect discovered in one of the company’s products. Net income for the year dropped to $19,911, contrasted with a net profit of $265,340 for 1988. Revenue increased 11%, to $6.5 million from $5.9 million.

The combination of returns, engineering and administrative costs, and increases in reserves caused by a defective parcel register system resulted in a fourth-quarter loss of $317,067. For the comparable period in 1988, the company posted net earnings of $62,672. Revenue dipped 2%, to $1.47 million from $1.49 million.