Golden Systems in Simi Valley has filed its annual report, including financial results for the fiscal year ended March 31, 1997, with the Securities and Exchange Commission.
Company officials said Golden Systems' difficult financial situation delayed the start of the 1997 audit. The company plans soon to begin quarterly filings for fiscal year 1998 and the audit of the year ended March 31, 1998.
Sales for fiscal year 1997 were $2.5 million, compared to $16.8 million for the prior year. Officials said the decrease was due primarily to product returns by one customer and being dropped by another major customer.
For fiscal year 1997, the company reported a net loss of $12.6 million or $2.84 per share, compared with a net loss of $4.8 million or $1.10 per share the year before. Included in the loss are provisions for slow-moving inventory of $4.3 million, and property, plant and equipment impairment loss of $2.4 million.
The company, which manufactures power switches, reported outstanding debts of $8.3 million due Indian lenders, all of which are currently in default. Three banks have issued notices to the company demanding immediate repayment.
The annual report also states that during fiscal year 1998, the company continued to incur significant losses and that management has not been successful in achieving profitable operations and positive cash flow. Outside of help from parties with ties to the company, Golden Systems has identified no viable source of financing.