Earnings Report Hurts Pinnacle Micro Stock
IRVINE — Shares of Pinnacle Micro Inc. fell 10.3% Tuesday after the company reported a sharp decline in first-quarter earnings, most of which was caused by the recent strengthening of the Japanese yen against the dollar.
The Irvine manufacturer of optical storage systems reported first-quarter net income of $12,000, less than 1 cent a share, compared with $1.3 million, or 24 cents a share, for the last year’s first three months. Quarterly sales reached a record $20.2 million, an increase of 21% over revenue of $16.7 million in the same period last year.
The company said the yen’s appreciation made inventory bought from Japanese suppliers very expensive. Also, the company recorded onetime professional fees associated with restating its 1994 financial results.
Pinnacle’s stock fell $1.125 a share to close at $9.75 a share in Tuesday’s trading on the Nasdaq market system.
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