Diceon Reports $11.2-Million Fiscal Year Loss

Diceon Electronics Inc., stung by the recession and the computer industry slump, said Tuesday that it lost $11.2 million for its fiscal year ended Sept. 30.

Peter Jonas, vice chairman of the circuit-board manufacturer, said the company has been hurt by shrinking orders, severe price competition, legal expenses and excess manufacturing capacity. The loss came despite efforts by the company to reduce expenses.

The $11.2-million loss, which amounts to $2.16 a share, compares to a loss of $10.2 million, or $1.85 a share, last year. Sales were $105.8 million, down 15.6% from $125.4 million a year ago.

Diceon has slashed its payroll during the past year from 1,514 employees to 1,090. Jonas said that the work force has been stable for the past six months and that no additional layoffs are anticipated.

Times are difficult for circuit-board manufacturers, who assemble and mount semiconductor chips onto plastic circuit boards used in a variety of electronic equipment from jet aircraft to large computers.

Last week, Anaheim-based competitor Data-Design Laboratories Inc. shut its Aeroscientific circuit-board subsidiary and laid off 185 employees. DDL lost $15 million in its most recent fiscal year.

Diceon incurred $1.4 million in legal expenses to fight efforts by a San Diego investment firm, Calvary Partners Ltd., to gain control of the company’s board in January.

Although Calvary’s attempt was unsuccessful, the two parties have been locked in litigation ever since.

For the fourth quarter, Diceon lost $4.2 million, or 82 cents a share, mostly due to a $3.5-million write-off of unused inventory and buildings in Santa Ana. In the year-earlier fourth quarter, the company lost $5.2 million, or $1 a share. Sales fell 25% to $25.7 million from $34.3 million.

Despite the losses, Jonas said Diceon is prepared to ride out the recession.

“We have $22 million in the bank and short-term investments, so we believe we’re financially stronger than the competition,” Jonas said. He added, however, that he sees no short-term improvement in business conditions.

Diceon’s Performance

In its fiscal year ended Sept. 30, Diceon Electronics Inc. reported a loss of $11.2 million as its revenues fell 15.6% to $105.8 million. The company attributed the loss primarily to the recession and the computer industry slump.

Figures are in millions, except per-share data.

4th Qtr 4th Qtr 12 Months 12 Months 1991 1990 1991 1990 Revenue $25,677 $34,346 $105,885 $125,466 Net income (loss) (4,279) (5,176) (11,255) (10,243) Per share (loss) (0.82) (1.00) (2.16) (1.85)

Source: Diceon Electronics Inc.