Pay-Fone Systems Reports 2nd-Quarter Loss

Pay-Fone Systems Inc., a struggling Van Nuys provider of automated payroll services, reported a net loss of $43,533 for its fiscal second quarter that ended Dec. 31. A year earlier, Pay-Fone earned $8,940.

Pay-Fone’s revenue slipped 2% in the latest quarter to $1.28 million from $1.31 million.

In the six months that ended Dec. 31, Pay-Fone’s loss widened to $244,703 from a loss of $96,344 in the first half of fiscal 1991. Its revenue fell 3%, to $2.5 million from $2.58 million.

Pay-Fone said its financial results were hurt by a decline in its customers’ employment levels.

The company also said its fiscal second-quarter results included a onetime payment made to Guy Lundberg, Pay-Fone’s former president and chief executive who was dismissed by the company in October and replaced by chief operating officer A. J. Holzherr. Pay-Fone said the payment, for an undisclosed amount, represented a full settlement of Lundberg’s claims for damages against the company in connection with his firing.