Restructuring Costs Add Up to Diceon Loss
Citing sluggish sales and the costs of a corporate reorganization, Diceon Electronics Inc., a maker of electronic circuit boards, said Tuesday it lost $10.2 million for its fiscal year ended Sept. 30.
The company had a deficit of $2.3 million a year earlier. Revenue increased 5.6%, to $125.5 million from $118.7 million a year earlier.
Diceon announced in September a manufacturing restructuring that included about 225 layoffs among its 1,500 employees. It also closed several Northern California plants and consolidated a facility in Chatsworth.
The restructuring resulted in a onetime charge against earnings of $4.7 million in the fourth quarter, slightly less than Diceon’s prediction of $5 million.
For the fourth quarter, Diceon lost $5.2 million. It had a loss of $155,000 a year earlier. Revenue was $34.3 million, up 11% from $30.9 million a year earlier.
Peter Jonas, vice chairman, attributed the loss to weak demand for the firm’s computer circuit boards and back panel products, tough price competition, excess manufacturing capacity and the lack of high-growth products.
The company said it does not anticipate an upturn in industry sales but expects that its cost reductions will enable it to remain competitive.
John L. Rast, an analyst with Burns, Pauli & Co., a securities firm in St. Louis, agreed with the company’s assessment: “The times within the computer industry are extremely competitive. (Diceon is) working at reducing operating costs, and it is wise of them to do so.”
DICEON’S LOSSES GROW
In the fourth quarter ended Sept. 30, Diceon Electronics Inc. reported a loss of $5.2 million as its revenues rose to $34.3 million. The company attributed the loss to a one-time $4.7-million restructuring charge.
Figures are in thousands, except per share data.
4th Qtr 4th Qtr 12 Months 12 Months 1990 1989 1990 1989 Revenue $34,346 $30,878 $125,466 $118,771 Net income (loss) (5,176) (155) (10,243) (2,287) Per share (loss) ($1.00) ($.03) ($1.85) $.39
Source: Diceon Electronics Inc.
