Computer Automation to Sell a Manufacturing Unit

Computer Automation Inc., a manufacturer of mid-size computers that has fallen on hard times in recent years, has agreed to sell its largest business operation to Technology Marketing Inc., an Irvine electronics firm, for about $4 million.

Computer Automation of Irvine said the unit, which manufactures automated equipment used to test circuit boards and other electronics components, made up about 60% of its $17.2 million in revenues in the fiscal year ended June 30.

George Pratt, Computer Automation’s chairman, said the sale will allow the company to focus on its remaining businesses. Those include its minicomputer manufacturing business and Talon Technologies, a Texas-based subsidiary which produces heavy-duty microcomputers, data communications equipment and facsimile gear for the petroleum and defense industries.

The operation that Technology Marketing is acquiring manufactures machines used to test circuit boards and other electronic gear. The machines typically cost upwards of several hundred thousand dollars each.

Computer Automation released its revenue figures on Thursday, but chief financial officer William Osmundsen said earnings won’t be released for several weeks. He declined to say whether the company expects to report a profit.

Officials at Technology Marketing could not be reached for comment late Thursday.

Computer Automation reported a loss of $1.9 million for the nine-month period ended March 31. Revenue declined 23% to $13.4 million.