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VALLEY ROUNDUP

Slowdown in Orders Leads to Layoffs at Alpharel

January 26, 1988

Alpharel, the troubled computer data storage company in Camarillo, is slashing its work force because of a slowdown in orders, according to president Clay Chisum.

Between 50 and 60 of the company's 180 employees will lose their jobs. Most worked in the manufacturing division, assembling Alpharel's data storage system.

"It is not a temporary layoff," said Chisum. "We did not promise anyone that they would be coming back within any given time."

Alpharel has depended for most of its revenue on a contract with AT&T, which supplied the Army and Air Force with a data storage system put together by the two companies. In 1986, the contract accounted for 91% of Alpharel's $13.9 million in revenue.

But the AT&T contract expires in September and is not being renewed. Alpharel has had very little success thus far in getting other orders to fill the void, although it has several bids outstanding on government data storage contracts.

Alpharel's stock has fallen from an initial offering price in June of $11 per share to $2.75 Monday. In late December, Michael McGovern, company founder and chief executive officer, resigned along with William Sweeney, chief financial officer.

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