MAI Systems Suffers $25.6-Million 3rd-Quarter Loss
MAI Systems Corp. Thursday reported a third-quarter loss of $25.6 million, citing lower sales, shrinking profit margins and the costs of a major reorganization.
The Tustin company’s loss for the quarter ended June 30 compares to a $228,000 loss for the same period last year. Third-quarter revenue was $80.4 million, down 17% from $97 million in the same three-month period last year.
The company, which develops software that it packages with other companies’ computers, said that lower sales in the U.S., Canada, Holland and France were partially offset by stronger sales in Germany.
About 800 of the company’s 3,400 employees have been laid off so far this year to trim expenses.
The company has also been shaken by two resignations--President Fred D. Anderson Jr. quit last May and Chairman William Weksel departed last November. Anderson was replaced by Peter S. Anderson, who is not related to Fred Anderson. Weksel was succeeded by New York financier and majority stockholder Bennett S. LeBow.
MAI reported a $16-million one-time charge for the costs of restructuring its sales and service organization in North America. It also said Thursday that it reached agreement with U.S. and Canadian lenders for a 20-day deferral of a principal payment due Sept. 30.
For the first nine months of its fiscal year, MAI lost $49.4 million contrasted with a $4.3-million profit for the same period last year. Revenue fell 10% to $256.3 million from $284.1 million.
The company said its acquisition of Computerized Lodging Systems Inc. in Long Beach, a supplier of computers for hotels, boosted sales during the latest quarter.