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Datapoint Reports Loss of $15.9 Million in Quarter

February 27, 1985

Datapoint Corp. said it lost $15.9 million in its fiscal second quarter, compared to a $9.29-million profit a year earlier.

The loss had been forecast by Datapoint last month, when the San Antonio-based computer maker noted that it would report a variety of one-time charges and reduced operating results. A copy of its latest results was released in New York.

The New York firm said the charges totaled $17.2 million before taxes and reflected inventory adjustments and costs associated with closing certain operations and reducing its work force.

The loss for the quarter ended Jan. 26 came on revenue of $129.5 million. In the year-earlier quarter, Datapoint had revenue of $140.8 million.

Datapoint is currently facing a takeover threat from New York investor Asher B. Edelman, who is trying to solicit shareholder consent to oust Datapoint's directors. Edelman then proposes to replace the board with his own nominees and sell the company to a third party.

As it has in the past, Datapoint blamed part of its problems on Edelman, who has denied that he is responsible for the company's performance.

"Orders in the second quarter in our domestic markets declined substantially from the first quarter due in part to recent speculation and uncertainty over the future ownership of Datapoint," Harold E. O'Kelley, chairman and chief executive, said in a statement.

The strength of the dollar against foreign currencies also curbed Datapoint's international performance, O'Kelley said.

For the first six months of its fiscal year, Datapoint said it lost $14.4 million on revenue of $269.6 million. A year earlier, it earned $14.7 million on revenue of $280.5 million.

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