Alpha Micro Plans to Buy Doelz Networks in Irvine

Alpha Microsystems of Santa Ana, a manufacturer of business computers, has agreed to purchase Doelz Networks in Irvine for an undisclosed sum, company officials announced Thursday.

Doelz is a 9-year-old firm that makes equipment to enable communication between computers manufactured by different companies, a process known in the industry as “providing data networking solutions,” said John S. Cain, Alpha Micro president.

Neither Cain nor Doelz President Anthony J. Dominicis would comment on the deal.

But according to a prepared announcement, Alpha Micro has acquired an option to purchase “substantially all of the operating assets and liabilities” of Doelz Networks but must act on that option by Oct. 7. “By exercising the option to purchase, Alpha Microsystems will be able to diversify and grow by acquiring a complementary technology,” said Robert B. Hitchcock, chairman of the board and chief executive.

Doelz has installed $30 million worth of equipment for clients in the United States, Australia, New Zealand and Canada. The proposed acquisition offers Doelz “on-site manufacturing capabilities and increased financial strength,” a spokesman for the firm said in the statement.

Alpha Micro also announced Thursday that it profits for the second quarter ended Aug. 28 more than tripled to $605,000 from the $189,000 reported for the same period last year. Revenues increased to $12.7 million, up 14% from the $11.1 million reported in the previous year.

For the first half, Alpha Micro reported a net profit of $1.3 million, more than four times the $287,000 posted in the first six months of the previous year. Sales in the first half increased 13% to $24.9 million from $22 million.

Gary Howard, an account executive specializing in high technology firms for the Santa Clara office of Bateman Eichler, Hill Richards called the potential acquisition of Doelz a good move. Alpha Micro is “very strong” financially, he said, and “by buying Doelz, that’ll just add to them.3