Chatsworth Computer scrambles for $1 million in additional financing.

Chatsworth Computer scrambles for $1 million in additional financing

A quick scan of 15 top local high-technology companies shows 14 saw their earnings per share decline within the past year. No doubt, shareholders were not thrilled. It's easy to see why Joseph Ahmadi is having second thoughts about taking his growing company public: shareholder pressure can be an awesome monkey on one's back.

Ahmadi, founder and president of Chatsworth Computer Corp., would now prefer that his small yet multi-faceted high-tech company be acquired or merged. Either way, to ensure the firm's growth continues, Chatsworth Computer needs access to $1 million. Not all that much, Ahmadi admits, but a sum that he thinks could put his company on the way to the big time.

Chatsworth Computer was founded in 1982 with the intent of being a computer service organization. In 1984, after little growth, the company incorporated and became a distributorship serving small, independent dealers. The company also manufactures its own PC.

In its first full year, Chatsworth Computer had revenues of $100,000 and lost money. The next year, while revenues grew to $600,000, a loss again followed. Not until last year, after the distributorship started clicking, did the company show a profit.

"We made $25,000. It wasn't that much, but it was significant because it was our first," Ahmadi, who favors growth without excess pressure, says.

This year, to date, financial projections are being surpassed and Chatsworth Computer will again go over the $1 million revenue mark.

Ahmadi wants to see more growth, though. Thus, the desire to be acquired, merge, or to a lesser degree, go public.

"We are actively talking, right now, with companies interested in us. We're hopeful something will soon be worked out," he says.

His anti-public stance is really based not so much on shareholder pressure, but another factor: "It's all a numbers game. It's easier to realize stronger growth--higher numbers --and go to higher levels of productivity if you are acquired," he says.

Simply said, cash in hand, that of an acquiring company, would be better than going through the sometimes lengthy and costly process of going public.

Joseph Kapka, Bateman Eichler, Hill Richards Inc. high-tech analyst says a firm like Ahmadi's will have a better future if it steers clear of its PC manufacturing end, or perhaps, from a newer PC maker as a partner.

The service and distribution end of the business, analysts say, is a little bit more open, especially at the level at which Chatsworth competes.

Ahmadi sees the San Fernando Valley as his company's immediate target area for expansion. A national course will come later, he says. That, and being the one stop service center for Fortune 1000 companies; a lofty goal indeed.

"We're constantly growing. I know we can achieve our goals," Ahmadi says. Now if his company just had $1 million.

Mitsui growth

Mitsui & Co. is forming a new company, to be based in Los Angeles, to develop, market and distribute computer, semiconductor and telecommunications products. Mitsui Comtek Corp. "is a major step beyond our traditional trading activities," says Mamoru Tabuchi, president of Mitsui USA and chairman and CEO of the new firm.

Another new company to be based here is Whitney/Demos Productions, a full-service production company in the areas of motion pictures, TV, programming and commercials. The firm will also be involved in computing sciences for business interests. Computerized graphics and image and scene simulation are to be the firm's specialties.

PlessCor Optronics Inc., Chatsworth, has won a pair of Air Force contracts. Total value is $750,000. One, for $325,000, is for development of technology for laser sources, while the second, for $391,000, is for development of an optical transmission system.

Softsel says

Softsel Computer Products Inc., Inglewood, has released its mid-August list of top selling business software packages. Ashton-Tate's dBase III Plus, which has been on the list for 31 weeks, ranked fourth. Its Multimate Advantage, on the chart for 19 weeks, is 15th, while its Multimate package, on the list for more than two full years, is 16th.

Locally based Norton Computing's Norton Utilities is the second best selling systems and utilities package. It has been on the charts for 98 weeks. Irvine-based Western Digital's File Card 20MB Hard Disk/Card is listed as the second best selling disk drive/storage device for the period.

Amperif personnel

Amperif Corp. of Chatsworth has promoted two executives to vice president. Willi Jilke and Dennis J. Cindrich have been elevated to vice presidents of product development and customer services, respectively.

The company named Webster L. Scroggin and Thomas M. Bates vice presidents of manufacturing operations and human resources, respectively.

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