Alpha Microsystems Tallies Year’s Losses

Alpha Microsystems said it will report a $3.5-million loss for the fiscal year ended Feb. 25.

The computer designer said it will write off $2 million of intangibles, primarily goodwill and capitalized software. Increased spending on new products and marketing accounted for the remaining $1.5 million of the loss.

Alpha Microsystems, which designs and develops business-oriented computer hardware, software and networking systems, spent more than $3 million on research and product development and $1.8 million on sales and marketing, the company said. Sales of the new products were negligible, partly because of the timing of introduction and lengthy sales cycle.

In December, Alpha Microsystems said it would start wide-ranging cost cutting and consolidation steps. Savings from these measures won’t be realized until the fiscal first-quarter ending May 26 because of severance costs paid during the fiscal fourth-quarter of 1996, the company said.

Final results for the fiscal year and fourth quarter will be released in mid-April, the company said. For the nine months ended Nov. 26, the company reported a loss of $504,000, or 8 cents a share, on revenue of $25.4 million.