Losses Grow for Millennium Electronics

Millennium Electronics Inc.’s losses continued to mount, and the company warned Tuesday that it may file for bankruptcy if it cannot work out a satisfactory arrangement with its major creditors.

The Aliso Viejo maker of computer memory products reported a net loss of $3.7 million, or 45 cents a share, for the fourth quarter, the fourth consecutive quarterly loss. A year ago, the company earned $120,000, or 2 cents a share. Revenue dropped 59% to $4.5 million from $10.9 million.

The quarterly loss pushed total losses for the year to $8.4 million, or $1.01 a share, contrasted with 1997 net income of $612,195, or 8 cents a share. Revenue declined 27% to $34.6 million from $47.5 million.

The company said it expects to file for protection under Chapter 11 of the bankruptcy code, unless it can come up with a satisfactory alternative.

The company owes its largest creditor, the Irvine Co., $90,000 in back rent, said Kenneth Gerstner, Millennium’s interim chief executive officer. The company also is negotiating with the Irvine Co. to be released from a five-year lease that was signed last April, he said. The company moved out of its 34,000-square-foot facility in Irvine earlier this month.

Last Thursday, the company’s founder, Troy Barnes, resigned as president and chief executive. The company also said its stock will be removed from the Nasdaq market for failing to meet listing requirements.

The stock closed Tuesday at 28 cents a share, up 6 cents.