Computer Maker Predicts $80 Million Loss
WEST CHESTER, Pa. (AP) _ Commodore International Inc., enduring sluggish sales while preparing to introduce two new home computers, says it expects to lose $80 million for its fourth quarter that ended June 30.
Most of the loss stems from a writedown of $50 million in the value of inventories, Paul Lazovick, director of investment relations, said Wednesday.
The company said its operating loss from the quarter would be between $20 million and $25 million with another $5 million in writedowns on the disposal of an office-furniture business and other items. Final figures will be released in about three weeks, Lazovick said.
It will be the second losing quarter in a row for Commodore and the second time it has reduced the book value of its inventories.
An $80 million loss for the quarter would mean a loss of $70 million for the fiscal year. The company made a profit of $143.8 million in 1984.
In 1983, Commodore, paced by its popular Commodore 64, had roughly half the market for home computers. Sales slumped for the 1984 Christmas season, the company said, and the Commodore 64 price was dropped about $50 to $150 after Christmas.
For the third quarter ended March 31, the company reported a net loss of $20.8 million. Revenue for the third quarter was $168.3 million.
Commodore is introducing two new computers, the Commodore 128 and the Amiga. The company started shipping the 128 recently and said the Amiga would be shipped in September.