Archive Yearly Loss Expected to Be $49 Million : Computers: The Costa Mesa maker of data-storage systems has been hurt as customers defer purchases during the recession.
COSTA MESA — Hurt by the recession and a computer industry slowdown, Archive Corp. said Monday that it expects to report a $49.3-million loss for the year.
The Costa Mesa manufacturer of computer storage systems attributed most of the loss to restructuring charges of $45 million for its third quarter. The company laid off 150 people and shut a production line at its Singapore factory during the third quarter, while reporting a total loss of $50.3 million.
Archive said the loss of $3.79 a share contrasts with earnings of $11.5 million, or 84 cents a share, a year earlier. Final results will be reported in mid-November.
Archive said it expects revenue of $345.6 million for its fiscal year ended Sept. 28, up 18% from $293.2 million a year earlier.
Earlier this month the company said it expected a fourth-quarter loss of between $1 million and $1.5 million, but on Monday it said the loss may be less than that. Revenue is expected to be $80 million, down about 5% from the year-earlier period.
Sales have been hurt by customers deferring orders during the recession, the company said. Many of Archive’s customers build centralized office computers known as minicomputers, a business which has been losing ground to personal computer makers.
Analysts have said Archive, whose products are used to back up data stored on computers, is counting heavily on a new line of quarter-inch tape cartridge drives. The drives can store up to 2.1 gigabytes of memory, or roughly the amount of data stored on three dozen personal computers with 40-megabyte hard disk drives.
Archive said the new drives are expected to be available early next year.
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