Alpharel Blames Contract Delays for $538,000 Loss

Alpharel Inc. said it lost $538,000, or 6 cents a share, in the second quarter ended June 30, compared to a profit of $243,000, or 4 cents a share, for the second quarter ended May 31, 1986.

Alpharel changed its fiscal year, so the second quarters of 1987 and 1986 end in different months.

The Camarillo maker of optical disk systems reported second-quarter revenue of $1,644,000, down sharply from first-quarter revenue of $3,506,000.

“The June 30, 1987, quarter was adversely affected by longer than expected negotiations and delays entering into new contracts,” said Clay Chisum, the company’s president. Marketing costs of $1.2 million also hurt the company’s results.

Alpharel’s contracts are mostly with the Army and Air Force. Along with its earnings announcement, the company reported that the Army had contracted for four more systems which should generate $4.3 million in revenue for Alpharel.

For the first six months of 1987, Alpharel reported a net loss of $295,000, or 2 cents a share, compared to a profit of $414,000, or 8 cents per share, for the comparable period in 1986.