Tandon Family Offers Cash to Golden Systems

Golden Systems Inc. in Simi Valley, which is struggling to recover from large losses in the last two years, has received a proposal for a capital infusion of approximately $2.25 million.

The proposal calls for a $2-million investment by the Tandon family, who founded the company and own 38.5% of its outstanding stock. The additional $250,000 will come from Prakash Thanky, the company’s president, and other members of management.

Golden Systems designs and manufactures switching power supplies for manufacturers of electronic equipment.

“Golden Systems is implementing a new business plan with a new management team,” said Jay Tandon, chief executive officer. “This investment should give the company the working capital to market itself to its new potential customer base and to ramp up production of the higher-priced, higher-margined products the company is now seeking to develop and sell.”

The proposed investment has been referred to the company’s committee of independent directors. If it is approved, the Tandon family will control 77.3% of the company’s stock.

Golden Systems also announced that in fiscal 1996, which ended March 31, sales dropped 31% from the previous year to $16.8 million.

Net loss for fiscal 1996 was $4.89 million, compared with $13.3 million in the prior year. The net loss per share was $1.10, versus a net loss per share of $2.99 in fiscal 1995.

The company’s financial condition and changes in management caused the preparation and reporting of year-end results to be delayed.