Printer Friendly

NORTHGATE ANNOUNCES THIRD QUARTER RESULTS

 MINNEAPOLIS, Dec. 10 /PRNewswire/ -- Direct marketer Northgate Computer Systems, Inc., today announced results for its third quarter which ended Oct. 2, 1993. The company showed a $3.4 million loss on sales of $11.3 million, compared to a loss of $4.3 million on sales of $28.8 million for the same quarter of 1992.
 According to Khaled Ibrahim, Northgate COO and acting president, the recent loss was the result of several factors. First, Ibrahim cited a decline in sales due to a lack of working capital which led to an order backlog of approximately $8.4 million. Other contributing factors to the loss include expenses related to the company's move to a new headquarters, its former landlord drawing on a $1.5 million letter of credit, and a $1.2 million write-off of tenant improvements on the company's previous facilities. Some of the loss was offset by a settlement with one of the company's major creditors.
 The company also announced that over the past few weeks, several investors have shown interest in investing in Northgate and/or acquiring a majority interest.
 In making these announcements, Ibrahim said, "In the absence of new funding during the third quarter, we developed a recovery plan to allow us to continue operations without reliance on outside sources of financing. This plan calls for the restructuring of our debt, a reduction in operating costs, and the subcontracting of some of our manufacturing." Ibrahim added, "We are pleased with the patience of our customers and with the cooperation from our vendors."
 Northgate Computer Systems, Inc., is a leading direct marketer of a broad range of high performance computer systems, network file servers, proprietary keyboards and peripherals. Northgate is a wholly owned subsidiary of Northgate Computer Corporation (NCC), a publicly held company trading on the Local-Over-the-Counter market.
 For more information about Northgate and its complete line of computing solutions, call 800-548-1993.
 NORTHGATE COMPUTER CORPORATION
 STATEMENTS OF OPERATIONS
 (In thousands, except per share amounts)
 Three Months Ended
 10/2/93 9/30/92
 (Unaudited)
 Net sales $11,267 $28,803
 Net income (loss) $(3,406) $(4,265)
 Net income (loss) per common share $(.05) $(.06)
 Average common shares outstanding 70,843 70,843
 Nine Months Ended
 10/2/93 9/30/92
 (Unaudited)
 Net sales $50,971 $97,711
 Net income (loss) $(4,995) $(15,904)
 Net income (loss) per common share $(.07) $(.22)
 Average common shares outstanding 70,843 70,843
 -0- 12/10/93
 /CONTACT: Khaled S. Ibrahim, chief operating officer and acting president of Northgate, 612-361-5000/


CO: Northgate Computer Systems, Inc. ST: Minnesota IN: CPR SU: ERN

AL-CP -- MN001 -- 2528 12/10/93 09:56 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 10, 1993
Words:443
Previous Article:McDONNELL DOUGLAS ANNOUNCES TWO PROMOTIONS ON F/A-18 PROGRAM
Next Article:EXERCISE OF 225,000 SHARE OVERALLOTMENT OPTION OF MACE SECURITY INTERNATIONAL INC. COMMON STOCK
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters