Practical Peripherals Parent Has Operating Profit

The parent company of Thousand Oaks-based Practical Peripherals Inc. says it is continuing to make progress in its efforts to emerge from U.S. Bankruptcy Court protection.

Hayes Microcomputer Products Inc. of Norcross, Ga., reports operating profit of $1.5 million on sales of $65 million in its fiscal second quarter ended March 31. It is the second consecutive quarter that the firm has posted operating profits, according to Dennis C. Hayes, president of the privately held concern.

Hayes has been under Chapter 11 protection since last Nov. 15. Just before filing its petition, the Georgia company formally merged with Practical, a wholly owned subsidiary, thus bringing both companies under the court’s protection.

Both firms produce modems and other equipment for the computer industry.

Sales set new records during the past six months, with bookings reaching more than $74 million in the latest three-month period, the company said.

“Those results reflect a 34% increase in year-to-year total of unit shipments, and are in excess of 100% unit growth year-to-year,” a company news release declared.

Dennis Hayes said the merger of Practical into the parent firm has been completed and is starting to make a significant economic impact. Overall, inventories have been reduced 22%, he said.

This and production line improvements have allowed gross margins to be “virtually restored” to 1993 levels, he added.