Golden Systems Posts 1st Quarter Drop in Sales

Golden Systems Inc. in Simi Valley reported a sharp decline in sales for the first quarter of its 1997 fiscal year, to $630,000, compared with $3.5 million for the same period last year.

Company officials said the decrease from the previous year is a reflection of continuing adverse effects from product returns in the latter half of fiscal year 1995 by a major customer, and subsequent notice from its newly established primary customer in fiscal year 1996 that the company no longer met its vendor selection criteria.

The company reported a net loss for the quarter, which ended June 30, of $1.2 million or 27 cents per share, versus a net loss of just over $2 million or 46 cents per share for the first quarter of the last fiscal year.

Earlier this month, the Tandon family, which founded Golden Systems, and certain members of the company’s senior management proposed a capital infusion of approximately $2.25 million.

The Tandons own approximately 38.5% of the company’s outstanding stock.

Golden Systems has announced it will implement a new business plan to market higher-priced and higher-margined products the company is seeking to develop and manufacture at its facility in India.