CalComp Plans to Close After Losing Support of Lockheed

Anaheim-based CalComp Technology Inc. announced Tuesday that it will shut its operations after Lockheed Martin Corp., its majority shareholder and primary lender, said it would not extend its existing credit line.

CalComp, which manufactures computer graphics products and employs 250 people in Anaheim, said it hopes to sell off major parts of its business and have an orderly shutdown of operations over the next six months.

But that will happen only if Lockheed Martin agrees to provide additional funding during that transition period. Otherwise, CalComp might be forced to file for bankruptcy.

“Our main goal is to work toward an orderly disposition of the assets and stay out of bankruptcy if at all possible,” said John Batterton, CalComp’s chief executive and president.

The company anticipates that it will reach the limit of its $43-million credit line from Lockheed Martin in January.

Lockheed Martin officials did not return phone calls. The announcement came after the stock market’s close. CalComp shares fell 3 cents on the day, to $1.06. Earlier this year, CalComp hired Salomon Smith Barney to find a buyer for its division in Scottsdale, Ariz., which develops scanners and digitizers and has 150 employees. The company now is trying to sell its division in Sunnyvale, which develops and manufactures inkjet printers for the graphics industry.

CalComp’s Anaheim operations, which also are for sale, include administrative staff, customer service and support and some manufacturing.

Batterton said any operations that CalComp can’t sell will be closed. The company employs 895 people overall.

The company, which had once been a subsidiary of Lockheed Martin, has had 12 consecutive quarters of losses totaling $176.6 million.

Last month, Lockheed Martin said it was considering cutting its 83% stake in CalComp. Earlier this year, CalComp had dismissed more than 200 workers in a cost-cutting move and restructured its debt with Lockheed Martin.

The company had pinned its hopes on its CrystalJet technology, which it said enabled commercial inkjet printing systems to produce photograph-quality color images cheaper, faster and with a greater variety of inks.

CalComp signed a joint development agreement with Eastman Kodak Co. earlier this year to develop more uses for the product.

But even company officials said they were late in introducing the technology.

“The company’s future is still very bright around this CrystalJet technology,” Batterton said. “Our problem has been that we were a year to a year and a half late in bringing it to market, and that causes a lot of the cash crunch.”