One-time analogue computer doyen, West Long Branch, New Jersey-based Electronic Associates Inc says it expects to report a $1m net loss for the fourth quarter, adding that it was notified that its principal lender will not waive the company’s noncompliance with financial covenants in its loan agreement. The bank has not declared Electronic Associates in default, but has asked for more information to evaluate its financial position, and in the meantime is not making additional advances under the credit facility in the loan agreement. The company is to concentrate on contract manufacturing and is cutting staff, and pay levels for those that remain, as well as setting a hiring freeze.
