Floating Point Sinks Into Red in Quarter
Floating Point Systems, a leading maker of scientific computer systems, reported its first quarterly loss in seven years and said it was taking action to cut expenses.
Lloyd Turner, president and chief executive of the Beaverton, Ore.-based company, said employment would be cut by 200 jobs, or about 12% of the total work force. Additionally, the company implemented a hiring freeze, deferred salary increases and is reducing other expenses. “No aspect of the company’s operations is immune from the cuts,†Turner said.
The bulk of the layoffs, he said, will be in manufacturing areas.
For the third quarter ended July 31, FPS lost $2.9 million, compared to a profit of $3.6 million in the year-ago quarter. Revenue during the period dropped 38% to $20.1 million.
Turner blamed the loss on continued sluggishness in the economy, low capital spending levels and increased competition in the mini-supercomputer arena. He said the company does not anticipate an immediate rebound to previous revenue or net income levels.
The impact of the cuts will be only minor in the coming quarter, FPS said, with evidence of the expense reductions occuring in its first quarter of fiscal 1987.
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