CMS Enhancements’ Earnings Drop 98% in 1st Quarter

CMS Enhancements Inc., the computer products manufacturer and distributor, said its first-quarter earnings plunged 98% to $17,000, from $857,000 in the year-earlier period.

Revenue for the three months ended Sept. 30 fell 23% to $33.2 million, from $42.9 million a year earlier.

The company attributed the lower financial performance to intense competition, high inventory costs at its Singapore plant and the costs of moving its headquarters from Tustin to Irvine.

The expenses at the Singapore plant are related to continuing inventory problems at the plant, said Bill Lackey, a company spokesman.

For its fiscal year ended June 30, CMS earned $407,000 on revenue of $187.7 million, contrasted with earnings of $4.8 million on revenue of $200.4 million a year earlier.