Perceptronics Warns of Possible Bankruptcy Filing

Perceptronics Inc. in Woodland Hills reported a $4.7-million loss in its fiscal fourth quarter that ended March 31, and warned that it could seek bankruptcy protection unless the company met certain financial needs within months.

The Woodland Hills maker of tank simulators and other military training equipment attributed the big loss to lower revenue, restructuring and development costs, legal expenses and $2.8 million set aside for future losses. In the latest quarter, the company’s sales dropped to $1.9 million, from $7.2 million in the same period a year ago, when Perceptronics posted a profit of $154,476.

With the latest results, Perceptronics’ loss for its fiscal year ended March 31 totaled $9.5 million, on sales of $11.4 million. In its previous fiscal year, the company earned $534,585 on sales of $25.5 million.

Because of the losses, Perceptronics said its ability to continue as a going concern depends on two factors: receiving by the end of September about $2 million in cash to operate for four months, and achieving enough sales in fiscal 1994 to support overhead costs. Otherwise, the company said it could be forced to cut employees and operations, or seek bankruptcy protection.

Also, Perceptronics said its stock would no longer be traded on the NASDAQ market system because the company failed to meet certain capital requirements. The company’s stock will now trade in the over-the-counter market and be quoted on the Electronic Bulletin Board as well as the so-called pink sheets.