Computer 2000 has warned it is unlikely to pay a dividend for its 1996 fiscal year as a result of the financial strain of restructuring its troubled US arm Ameriquest.
Ameriquest has announced a $8.5 million loss in its Q3 ended 30 June, and a massive cost-cutting plan. It has also appointed Michael Dressen as president, to join the firm from C2000's Italian subsidiary.
Dressen has filled the position that former Frontline MD Mark Mulford left in May. Mulford resigned from his role as president and COO, giving up a salary of $190,000 plus bonuses of up to $404,000. Significantly, he has not taken up a new job since he left.
Ameriquest also announced it will move its purchasing, marketing and administrative departments in October from California to an existing site in Miami, making around 60 people redundant in the process.
Steve de Windt, chairman and CEO of Ameriquest, said: 'By bringing our operations together we will not only reduce operational expenses, but also be able to improve communication, service and support to customers and vendors, and eliminate the redundancies we have today.'
C2000's group worldwide sales grew by 37 per cent to around DM5.1 billion in the nine months up to 30 June, compared with DM4.9 billion for the whole of fiscal 1995.
But pre-tax profit amounted to DM13.3 million for the first three quarters of 1996, compared with DM40.4 million in the entire previous fiscal year.
The group did not release the figures for the first three quarters of 1995.
C2000 representatives described the results as satisfactory, given the costs of Ameri-quest's restructure.
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