newsbytes@clarinet.com (02/04/90)
SYDNEY, AUSTRALIA, 1989 JAN 30 (NB) -- US computer retailer ComputerLand has suffered its biggest annual loss, and cites mismanagement in Australia as one major cause. Although revenues in fiscal 1989 increased by 29% to US$2.6B, the company experienced a net loss of US$34.1M for the fiscal year, ended last September, resulting mainly from write- offs and operating losses in overseas operations. The Australia venture, with revenues of approximately US$100M, lost a massive US$35.4M in fiscal 1989. The Australian operation felt the effects of mismanagement with a series of mishaps, such as when a joint-venture company, half owned by ComputerLand, misstated sales earnings and inventory numbers at 21 of its outlets. Also, a middle manager was caught and jailed after appropriating US$1-2M in customer payments. Edward Anderson, chief operating officer, said last week that in an effort to "lean-up" costs and put tighter control on policy, much of the top management with the Australian-based operation had been changed. Vice-Chairman Richard Bard moved from the US to Australia to replace former top executive, Mike Boulos, who is being sued by ComputerLand for financial malfeasance. While the Australia venture showed a significant loss, profits on the company's US, Canadian and European operations actually grew 53% to US$12.3M in the last financial year. There were, however, a couple of other black spots. China lost US$5M in write-offs when the recent Beijing uprising prompted a shut-down of ComputerLand operations in Beijing and Hong Kong. In Norway, the company decided to take US$6M in write-offs to cover possible losses on loans made to two franchisees. Anderson also said: "The past is behind us and ComputerLand will be profitable in the December and March quarters." (Paul Zucker and Computing Australia/19900131)