Two Overseas Subsidiaries Shut by Alpha Micro

Slowed by the recession, Alpha Microsystems said Monday that it has closed two overseas subsidiaries, contributing to a loss for its latest fiscal quarter.

Douglas Tullio, chief executive of the business computer company, said in a statement that Alpha Micro has shut offices in Italy and France because of losses in those operations. The closures and other restructuring costs led Alpha Micro to report a loss of $2.9 million, or 99 cents a share, for its second fiscal quarter, which ended Aug. 30. That contrasted with a profit of $68,000, or 2 cents a share, for the same period a year earlier. Revenue was $12.9 million, up 9% from $11.8 million.

Tullio said the company is renegotiating the lease on its Santa Ana headquarters to lower its costs by $1 million a year. Company operations will be consolidated from two locations into a single, 103,000-square-foot building at the headquarters site on Sunflower Avenue near Harbor Boulevard.

After eliminating 15 jobs at its headquarters and closing the sales offices overseas, Alpha Micro now employs 323 people, including 190 at the headquarters. Tullio did not say how many jobs were cut at the two closed subsidiaries.

For the latest six months, the company reported a loss of $4.3 million, or $1.43 a share. That contrasted with a profit of $239,000, or 8 cents a share, for the first half of the previous year.