found this on AOL
t
Signals company is back on track
Friday, September 5, 1997
By Chris Pope
Telegram & Gazette Staff
Signals company is back on track
MILLBURY-- As evidence that its efforts to get back on its financial feet
are beginning to pay off, Omni Multimedia Group Inc. yesterday announced
that it has renegotiated the terms of its credit with its California lender.
ÿ ÿ ÿ ÿ ÿRobert E. Lee, Omni's chief financial officer, said the new arrangement
will give the company access to an additional $500,000 of its $5 million
borrowing line with Coast Business Credit of Los Angeles. Lee said the
money will be used to support Omni's increasing sales and to tide the
company over until it returns to profitability.
ÿ ÿ ÿ ÿ ÿIn its most recent quarter Omni reported a net loss of about $2.8
million on about $5.5 million in revenues. The computer software publisher
ran into financial difficulty last year when sales from its floppy disk making
business fell much faster than they could be replaced by the company's new
line of compact disks. The sales plunge came during the same time that Omni
increased spending to get into the CD-ROM disk business.
ÿ ÿ ÿ ÿ ÿAccording to its most recent filing with the Securities and Exchange
Commission, Omni was able to continue operating during the current quarter
only by delaying payment of some $2 million owed to its vendors and another
$1.3 million in interest and principal payments to its lenders. Lee said the
restructuring of Omni's credit with Coast Business Credit would help ease
that situation and allow the company to pay suppliers who now deal with it
for cash on delivery.
ÿ ÿ ÿ ÿ ÿLee said the company's efforts toward a more general restructuring of
its debt and possibly to obtain additional equity financing were proceeding
well. Meanwhile, he said, Omni's sales are running about 40 percent ahead of
last quarter's pace. If improvement continues at the present rate, he said,
Omni could return to profitability as early as next month.
ÿ ÿ ÿ ÿ ÿ"We're not declaring victory yet, but I think we're at the point where
we can determine that the light at the end of the tunnel isn't a train," Lee said.
"These days I'm spending more time talking to people who may want to lend
us money than to creditors or stockholders, so I guess that's a sign things are
moving along toward where we want to be."
ÿ ÿ ÿ ÿ ÿOmni stock yesterday closed at 1, up /2 for the day and 100 percent in
the last week. The stock remains down more than 50 percent since the
beginning of the year, however.
c 1997 Worcester Telegram & Gazette
Order the Telegram & Gazette delivered at your home or office - 791-4600
Get the Net atTango!
Call 1-800-308-8414
Copyright 1997 - Tango! - Telegram & Gazette Online |
