Cipher Data's net income fell by 33% to $686,000, and revenue dropped by 12% to $39 million for the first quarter ended Sept. 30, the company reported Wednesday.
The revenue drop resulted from the failure of Optimem, Cipher Data's Mountain View-based optical disk-drive subsidiary, to meet an "aggressive revenue growth plan," according to Cipher Chief Executive Gary E. Liebl.
Cipher Data was also unable to "source sufficient printed circuit boards in time to deliver approximately $3 million of additional business," adversely affecting revenue, Liebl said.
Optimem is expected to meet its sales goals "by the end of the second fiscal quarter," according to Liebl.
In a related announcement, Liebl said Cipher will delay the previously anticipated fall introduction of a line of half-inch, cartridge-tape-drive products Cipher Data would not say when the line will be introduced, but Liebl said "key customers" will be given a chance to "evaluate" the products before a general introduction.