TouchStone Software Corp.: The Huntington Beach company...

TouchStone Software Corp.: The Huntington Beach company posted a first-quarter loss as revenue slumped. The company said it lost $1.9 million, or 25 cents a share, contrasted with net income of $457,000, or 7 cents a share, a year ago. Revenue dropped to $756,000 from $2.9 million as the company continued to struggle with soft demand for its computer diagnostic software.

The company is deferring some revenue on shipments of new products until it determines how well they are selling. Last year the company was hit by an unexpectedly large number of returns of a software kit designed to be used with Windows 95, the Microsoft operating system.