Sale of SM&A; Unit to Managers Fails

SM&A; Corp., which helps companies pursue government contracts, said Friday it has scrapped the sale of one of its units to the managers because of financing problems. The Newport Beach company will liquidate the StamiNet Inc. unit, which resells computer networking equipment, reducing fourth-quarter earnings. The stock on Friday slumped 22%, or $3.19 a share, to $13.06. The managers who had sought to buy the unit failed to obtain financing, said Michael Piraino, SM&A; president and chief operating officer. Costa Mesa-based StamiNet employs eight to 10 workers, Piraino said. SM&A;, which has 650 employees, will attempt to relocate as many workers as possible. The others will be fired and given severance packages, Piraino said. The liquidation is expected to be completed in about 30 days. SM&A; said its fourth-quarter loss from discontinued operations widened to 5 cents a share from 3 cents because of the liquidation. The company revised its fourth-quarter net income to 11 cents a share from 13 cents.