The business of supplying ROM BIOS implementations for personal computer manufacturers wanting to retain full compatibility with the IBM original is not the business it was, and Phoenix Technologies Ltd, Norwood, Massachusetts is having to make some very painful adjustments to get its operations back on an even keel. The company warns that it expects to report an operating loss for its fiscal fourth quarter to September 30, and will be taking charges that will plunge it into major losses. It expects sales for the period to be about $10m – a big increase on the $4.5m for the same period last year and up on the $9.3m for the third quarter. The loss before charges, bad debts and taxes is expected to be about $2m, and after all charges, the net loss is likely to be as much as $8.5m. The restructuring charges consist mainly of write-off of fixed assets and related facilities costs now regarded as surplus to its future requirements and some write-off of capital software and costs associated with personnel reallocations. The company says its cash position is strong with over $10m in the bank and that the fourth quarter should once again be cash-positive. The new plan works towards a return to profits by the end of next fiscal year, and reckons that it is ideally positioned to take advantage of the proliferation of technologies and standards in the personal computer and laser printer markets, both by virtue of its superior compatibility products and its worldwide relationships with leading system vendors. The company has high hopes for the trend towards notebook computers.
