Optical storage company Pinnacle Micro Inc has fallen on hard times, and is to take a one time charge of approximately $4 million in its third quarter l996 for a planned restructuring, and due to one of its major customers changing a component order. The company has two manufacturing plants operating below capacity, and will cease manufacturing at its Irvine, California headquarters, transferring the work to Colorado Springs, where it does research and development as well as manufacturing. Some jobs will be lost at Irvine, but others will be created in Colorado, says Pinnacle. It also plans to save money by outsourcing certain other key functions. Two weeks ago, the company signed a $10m loan and security arrangement with loan company Coast Business Credit. Earlier this week it announced the resignation of company co-founder Scott A. Blum, vice president of marketing. Blum will remain on the board. Ten year-old Pinnacle has grown from start-up to a revenue of $81m in 1995, but t his year was hit by slackening sales and price erosion in CD-Recordable sales. It pins its hopes on its new four times write/read RCD CD-Recordable, launched last month, and on its forthcoming Apex 4.6Gb optical drive, which is due to ship in the fourth quarter.
