Procom Technology Loses $1.3 Million in 4th Quarter

Procom Technology Inc., Santa Ana manufacturer of network storage products, reported a fourth quarter net loss of $1.3 million, or 12 cents a share, compared with net income of $121,000, or 1 cent a share, for the year-earlier period. Revenue for the quarter ended July 31 declined 15% to $24.2 million from $28.6 million. For the year, the company said it lost $2.9 million, or 26 cents a share, compared with net income of $5.4 million, or 48 cents a share, for the prior year. The net loss included a third-quarter restructuring charge of $1.6 million. Revenue was down 9% to $101.3 million from $111.9 million. The company said sales for the year were hurt by pricing pressure on hard-drive disk products and reduced demand for CD server products. Procom also said its acquisition of Gigatek Srl, an Italian distributor, reduced net income and revenue in the first six months.