Dense-Pac’s Revenue to Fall Short of Goal

Dense-Pac Microsystems Inc. said Friday that its revenue for the current fiscal year will be substantially below earlier company estimates due to sluggish commercial sales and uncertainty in the defense industry.

Bill Stowell, chief financial officer, said Dense-Pac now expects revenue for the current fiscal year, which ends in February, 1991, to be 20% to 30% below the previously estimated $10 million.

The Garden Grove company designs and manufactures high-speed computer memory chips and other electronic components.

Although the current period is usually strong for the company, said James G. Turner, chairman and chief executive, orders have been weak and the firm’s backlog has declined to $2 million, down from $3.2 million in February.

Stowell attributed the decline in commercial sales to soft demand for high-end components in the drilling-equipment industry as well as to a transition to a new generation of memory chips. “Customers are no longer buying the older generation, and they are only sampling the new chips,” he said.