Cimco’s ‘Substantially Lower’ Sales Cited in Layoffs, Bad Profit Outlook

Cimco Inc., a maker of plastic parts for business machines and computers, Tuesday blamed “substantially lower” sales in the recent layoff of as many as 75 people, or 9% of its nearly 800 employees.

Cimco said it expects to report a much smaller profit for its third fiscal quarter, which ends Jan. 31, than the $279,000 it earned for the previous three months and also lower sales than the second quarter’s $19 million.

Cimco blamed an “unexpected falloff in sales” from big customers in the computer industry who, Cimco said, have been hit by declining profit margins on the computers they sell.

Cimco also said it is facing stiffer competition from other makers of data cartridges, one of two products the company sells to computer manufacturers. The other is the plastic housing for printers.

In Tuesday’s trading on the NASDAQ market, Cimco closed at $7.75 a share, down $1.25.