Q3 loss forces Hayes off road to recovery

Hayes Microcomputer Products has hit a slump in its third quarter, with a loss of $9.1 million on turnover down 24 per cent compared with Q3 last year.

Turnover for the quarter ended 30 September was $55.2 million. The figures compare with a loss of $8 million on a turnover of $72.3 million for the same period last year.

This is the second set of quarterly results since the firm emerged from Chapter 11 in April and the figures compare poorly with the profit shown in in Q2. But Hayes said a $6.5 million restructuring charge for closing its Californian plant was partly responsible for the loss.

President and CEO Joseph Formichelli said: 'The quarter was an important rite of passage in creating Hayes' comeback. As a result of taking the restructuring charges in this quarter we are in a stronger position going into the fourth quarter, with low inventories, higher gross margins and a stronger cash position.'

For the nine months ended 30 September, Hayes lost $419,000 on turnover of $201.2 million, compared with a loss of $10.7 million on turnover of $197 million for the same period last year.

Hayes has reduced the prices of its Accura modems by up to 25 per cent and added a CD-Rom software bundle.