Smith Corona said it had a disappointing financial performance in the October-December period last year, that an earnings shortfall “may impair its ability to finance operations,” and that it is now “addressing all of its strategic options.”
That last part of the statement frequently indicates that a company is looking for new capital and possibly a merger partner.
In its alert, Smith Corona said its sales of typewriters and related products were below expectations, and that delivery delays impacted on sales of new products. The result, it said, was that its financial performance did not “follow positive trends of the previous two quarters.”
Smith Corona had net a profit of $600,000 in its fiscal fourth quarter ended June 30 and a minimal $315,000 loss in its opening fiscal 2000 quarter. For its fiscal second quarter, the company said, it expects to show a loss of between $2 million and $3.5 million on sales of about $7.7 million. In the same period last year it lost $6.3 million on sales of $13.3 million.