Sell-off of CPU arm fills Radius pockets

Monitor and graphics card manufacturer Radius has made a healthy $13.9 million profit for its Q2 ended March 30, on sales of $30.6 million.

But Radius' profitability came as a result of the $17.2 million sale of its colour server group and Mac OS-compatible business during the quarter.

Sales during the quarter were little more than a third of what they were in the same quarter last year. In Q2 1995, Radius made a $300,000 profit on sales of $84.4 million.

Radius Europe general manager Tim Collin said Radius would become a low-turnover company, but would focus on higher margin monitor and graphics card business.

The $17.2 million received during the quarter was the first instalment for the sale of its loss-making CPU business and its colour server business.

As a result of the sale, Radius owns 20 per cent of Splash Technology and Umax Computer.

Collin said Radius would receive more cash for the sale during the next quarter, and that it expected future quarters to remain profitable.

The company made a loss of $25 million for the quarter ended September 1995, which has been reduced each quarter. Without the proceeds from the sale of business it would have made a $3 million loss for the latest quarter.