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Applied Data Communications Trims Work Force 21% Due to Slowing Sales

June 09, 1989|JOHN CHARLES TIGHE

Applied Data Communications in Tustin said Thursday that it laid off 13 employees, or 21% of its work force, last month because of a decline in business for the company's fiscal fourth quarter ended March 31.

President Walter J. Kane said that orders were below expectations and that sales were down during the quarter compared to the year-earlier period. Complete financial results will be released later this month, Kane said.

Applied Data, a maker of duplication and test equipment for computer storage devices, lost $483,700 for its fiscal 1989 third quarter, while revenue was $1.75 million, down 32% from the same period a year ago.

The cutbacks, affecting workers in most areas of the company, reduce the company's payroll to 48 workers. Five years ago, the firm employed 137 workers.

Kane said the layoffs will allow the company to be profitable at its current level of business. He said no further job cutbacks are expected. He said the company expects to save about $500,000 on an annual basis from the reduced work force.

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