Wespercorp reported a net loss of $1.2 million for its 1987 fiscal year ended June 30, compared to a loss of $1.7 million in 1986.
The Santa Ana-based computer products maker reported revenues of $8.8 million, a decline of 38.9% from $14.4 million a year earlier.
The company said its results for 1987 included an extraordinary expense of $605,000 for settlement of litigation.
As previously reported, the company has announced a financial restructuring plan in which it will exchange most of $3.9 million of debt it owes its bank into 1.9 million newly issues shares of common stock and 200,000 shares of newly created preferred stock.
The company also said its auditor issued a qualified opinion of the firm's 1987 financial statements. In explaining its opinion, Touche Ross & Co. said Wespercorp's "continued existence is still dependent upon its ability to generate sufficient revenues and cash flows to meet its obligations and to obtain additional financing as required. Because of the company's past operating results and the current financial conditions, we cannot be assured the company will be able to continue as a going concern."