Everex Systems Inc. Facing ‘Bleak’ Future
FREMONT, Calif. (AP) _ Everex Systems Inc. appears to be the latest victim of a shakeout in the personal computer industry, announcing substantial losses and the resignation of top executives.
Everex, which produces a line of IBM-compatible PCs and peripherals, said that although its yearend financial audit has not been completed, it expects to post a loss of $80 million to $120 million on sales of $503 million for the fiscal year ending Aug. 2, 1992.
In an announcement Thursday, it said it also expects an additional loss for the quarter ending in October.
The company also announced that Harold Clark, president and chief operating officer, had resigned effective immediately. Dave Zacarias, the company’s chief financial officer, also resigned. No replacements were announced.
Company chairman Steve Hui and spokesman Michael Whalen did not return telephone calls Friday seeking comment.
″I would really be surprised if they (Everex) would be around for 1993,″ Robert Corpuz, a PC analyst with Dataquest Inc., a market research firm in San Jose, said Friday.
Corpuz said the future at Everex appears bleak, and that the company had been severely affected by Compaq’s introduction in June of its low-priced ProLinea PC line.
Everex has quietly laid off as many as 500 workers in the past two months, in addition to announced layoffs of 500 workers during the August-September period.
The company’s worldwide workforce now totals about 1,100, down from a peak of 2,500 a year ago.
Everex and other IBM-compatible PC makers have been hard hit by a price war this year in which name-brands such as Compaq, Dell Computer Corp. and even IBM slashed prices.
Everex announced in October that it faced huge losses, and said a cash shortage had forced its creditors together into a committee.
There has been speculation in Silicon Valley since last summer that Everex may be forced to file for protection under federal bankruptcy laws.
In the announcement Thursday, Lucinda Dennis, a representative of the group of creditors, said the company is working to satisfy creditors and is pursuing unspecified outside financing.
Everex shares this year have sold as high as $7.75 per share. Recently it has been hovering at about $1 per share, and on Friday closed at $1.06, unchanged from Thursday.