Gradco Loses $10.9 Million in Fiscal Year
Despite a small profit in the fourth quarter, Gradco Systems Inc., a manufacturer of office-copier products, reported a $10.9-million loss for its fiscal year ended March 31.
The loss, which the company attributed primarily to the costs of a major reorganization, contrasts with a loss of $28.1 million a year earlier. Sales fell 11%, to $79.4 million from $89.5 million a year earlier.
For the fourth quarter, the company had a profit of $75,000--a big improvement over a quarterly loss of $26.5 million a year earlier.
The quarterly profit is the first the company has reported since New York publisher Martin E. Tash ousted Gradco founder Keith Stewart in a fight for control of the company last October.
Fourth-quarter sales rose 2%, to $19.4 million from $18.9 million.
“We are now functioning with a limited overhang of unproductive people and activities,” said Bernard Bressler, corporate secretary. “Our basic plan when we came on board in October was to keep the company afloat.”
During the quarter, the company took a writeoff of $1.7 million, mainly attributed to the closing of the company’s money-losing printer operations, said James Owens, company treasurer.
Earlier this year, the company transferred most of its assets to its Japanese subsidiary, Gradco Japan. As a result, Gradco Systems has been reduced to a holding company with 10 employees.
The parent firm owns the company’s Venture Engineering subsidiary in Texas and 59% of Gradco Japan, which makes sorters and other equipment for office copiers.
Gradco’s Performance
In the fourth quarter ended March 31, Gradco Systems Inc. reported a profit of $75,000, as its revenues grew 2.4% to $19.4 million. The company attributed the slight improvement to a cost-cutting program.
Figures are in thousands, except per-share data.
4th Qtr 4th Qtr 12 Months 12 Months 1991 1990 1991 1990 Revenue $19,458 $18,995 $79,373 $89,505 Net income (loss) $75 ($26,530) ($10,955) ($28,108) Per share (loss) .01 ($3.51) ($1.44) ($4.02)
Source: Gradco Systems Inc.
