Amid a sharp decline in quarterly sales, Alpha Microsystems laid off about 25 employees earlier this month, or about 16% of the company's Santa Ana work force, it said.
The company, which makes computer hardware and software products, also reported a loss of $597,000, or 9 cents per share, for the third quarter that ended Nov. 26.
In the comparable quarter a year earlier, the company posted a loss of $196,000, or 3 cents per share.
Third quarter sales totaled $8.27 million, down 16% from $9.85 million a year earlier.
Douglas J. Tullio, chief executive of Alpha Microsystems, said sales of the company's older hardware products "experienced an unexpectedly steep decline" while the company was spending money to roll out newer software products.
Tullio said the job cuts, which affected assembly and marketing employees, were part of an attempt to consolidate operations in older product lines.
For its nine-month period, the company reported a loss of $504,000, or 8 cents per share, compared to a loss of $928,000, or 14 cents per share, in the comparable period a year earlier. Nine-month sales totaled $25.4 million, down 15% from $29.7 million a year earlier.
Alpha Microsystems, based in Santa Ana, makes a variety of computer systems including equipment and software used in dental office management and school cafeteria administration.
The company employs 339 people worldwide, including 135 in Orange County.