Personal Computer Products Inc., a financially strapped Rancho Bernardo manufacturer of laser printers, announced that it has raised $4.2 million in much-needed equity capital through the private sale of 5% convertible preferred stock.
Proceeds from the preferred stock issue will be used to expand PCPI's sales and marketing operations and to fund product research, the company said. The proceeds have also enabled PCPI to pay off $92,500 in overdue dividends owed to holders of previously issued preferred stock, spokesman Don Irby said Wednesday.
The company also disclosed a net loss of $196,000, or 12 cents a share, on revenues of $1.2 million for the third quarter ended March 31, compared with a net loss of $168,500, or 10 cents per share, on sales of $563,900 over the same three months a year previous.
For the nine months ended March 31, PCPI's year-to-date net loss totaled $323,100 on revenues of $3.9 million, compared with a net loss of $583,800 on revenues of $1.8 million over the same three quarters last year.
PCPI has rarely been profitable since it began operations in 1982. The company's accumulated deficit as of March 31 totaled $3.3 million. Chairman Edward Savarese has said the new LaserImage 3000 laser printer, which the company began shipping in March, may lead to profitability.