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EARNINGS

Wespercorp Has $2.9 Million Net Loss for Year

October 02, 1985

Wespercorp, a manufacturer of computer peripherals that has been battered by long-running financial difficulties, Tuesday said its losses lessened during both the fourth quarter and entire fiscal year ended June 30.

During fiscal 1985, the Tustin-based company posted a net loss of $2.9 million, down from $11.4 million the prior year. Sales for the year totaled $20.1 million, compared with $17.4 million in 1984.

Losses for the fourth quarter were $446,000, compared with a net loss of $5.2 million in 1984. Sales for the quarter were $4.8 million, compared with $6.3 million a year earlier.

Dan Whelan, Wespercorp's chief financial officer, said the decreased losses in 1985 were due in part to cuts in overhead and spending, including the laying-off of about 40 of the company's 160 employees.

Nevertheless, company auditors caution that because $4.3 million in bank debt will become due in late 1986, the firm's ability to stay in business will be affected by whether it is successful refinancing the obligation.

Whelan, who hopes that new products to be introduced this year will help the company to a full recovery, predicts that Wespercorp will reach the break-even point next year and that if the company's recovery continues the lenders "will continue to work with us."

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