CMS Reports $5.4-Million Loss for 2nd Quarter

Struggling from the computer industry slump, CMS Enhancements Inc., an Irvine maker and distributor of computer products, reported Tuesday a loss of $5.4 million for the second quarter ended Dec. 31.

The loss contrasts with profit of $9,000 for the same period a year earlier. On a per-share basis, the company reported a loss of $1.87 per share; its profit a year earlier was less than 1 cent per share.

The loss included a $4.5-million charge against earnings to pay for shutting down or selling assets, including a disk-drive repair plant and a plant for making storage equipment that backs up data in case of accidental loss, the company said.

Revenue fell 11% for the quarter, to $29.3 million; they were $32.9 million a year earlier. The company also attributed the loss to higher costs of supporting company operations overseas and marketing costs for the company’s new line of personal computers. For the six months ended Dec. 31, the company reported a loss of $6.3 million, or $2.18 a share, compared to earnings of $26,000, or 1 cent per share, a year earlier.

Revenue for the six months was $59.1 million, down 10% from $66.1 million a year earlier.