Kenfil Inc. Posts 70% Drop in Second-Quarter Profit

Kenfil Inc., a Van Nuys computer software distributor, reported a 70% drop in profit for its fiscal second-quarter that ended Dec. 31, and said its losses from the Northridge earthquake Jan. 17 could amount to $3 million to $4 million.

For the second quarter, Kenfil earned $72,000 compared with a profit of $237,000 in the same period a year earlier. Fiscal second-quarter revenue totaled $49.9 million, about the same as a year earlier.

Earnings for the six months that ended Dec. 31 fell 64% to $181,000, from $505,000 for the same period a year earlier. Its latest six-month revenue increased 8% to $96.5 million, from $89.7 million.

The company said it expected soon to announce plans for a restructuring and consolidation of warehouse operations. Kenfil said it expected to take a charge of about $700,000 in the quarter that ends March 31 for expenses related to the restructuring.

In addition, the company said the earthquake halted operations for about two weeks and destroyed several million dollars of inventory. The company is now fully operational.