Helionetics Expects to Report ’85 Fiscal Year Loss
In line with a spate of layoffs and a slowing of its once-rapid growth rate, Helionetics Inc. of Irvine said Thursday it expects to report an operating loss for the final quarter and the entire 1985 fiscal year.
The high technology and defense electronics company added that preliminary data show the operating losses to be partially offset by extraordinary gains, possibly from the sale of some of its subsidiary operations. The company would not specify the size of its anticipated loss.
In a terse announcement, Helionetics also said the current low market price for its stock has forced it to cancel plans to issue 400,000 shares of preferred stock, a move that requires the company to pursue other avenues for much-needed operating cash.
In a prepared statement, Michael M. Mann, president and chief executive, said that during 1985 Helionetics had “put the brakes on rapid expansion, reduced expenses substantially and strengthened the business development program.â€
Mann, who took over the top job in late 1984, said the company had entered 1986 with a record order backlog of $47 million and strong prospects for additional sales.
“The austerity program has been implemented and should result in improved profit margins on our 1986 sales, provided that we succeed in our efforts to infuse the necessary working capital,†Mann said.
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