Despite a recently revealed $5-million write-down in inventories, Archive Corp. posted net income of $2 million for its 1986 fiscal year ended Sept. 26, double the $1-million profit reported for the previous year. Annual revenues rose 36.3% to $78.8 million from $57.8 million last year.
As anticipated, the Costa Mesa data storage equipment manufacturer posted a sizable fourth-quarter loss, $845,000 contrasted with net income of $538,000 in the final quarter of its fiscal 1985. Quarterly revenues rose 2.8% to $18.2 million from $17.7 million in the last quarter a year ago.
Three weeks ago, Archive said that accounting errors discovered by its auditors would force the company to write down $5 million worth of inventories.
Archive said the write-down was necessary because the value of inventory from its Singapore manufacturing plant had been overstated. The discovery of the huge accounting error led to the Nov. 7 resignation of J. Peter Wilson as president and chief operating officer.