Davin Plans New Attempt to Raise Cash : Finance: The minicomputer maker hopes to realize $2 million on an initial public offering of what it concedes is a risky stock. An earlier offering attracted little interest.

IRVINE —  Davin Computer Corp., a fledgling company founded by one of Orange County’s computer pioneers, is making a second attempt to raise public funds to get its minicomputers to market.

The company, in an initial public offering of what it acknowledges as a risky stock, plans to raise $2 million to continue development of a line of “low-cost” minicomputers, according to a public filing with the Securities and Exchange Commission.

Davin, founded in 1985, has developed several prototype computers but has yet to sell its first product. Even if the offering is successful, the company said it will still need to raise another $5.5 million during the next several years to remain in business.

Davin, which went public by acquiring a shell company in 1989, attracted little investor interest when it attempted earlier this year to raise $4.8 million in a public offering, said company President David H. Methvin, who founded Computer Automation Corp., a computer maker formerly based in Irvine.

Methvin believes that his company will fare better this time because the offering is for a smaller amount and seems to be attracting more interest among investors.

“This is a high-risk issue,” Methvin said. “We tried to find venture capital, but there isn’t any. If you can’t afford to risk your whole investment, don’t invest in this company.”

Among the risks listed in the company’s registration filing are an $800,338 working capital deficit, delays in getting its product to market and competition from larger computer makers.

Davin plans to use the funds for development and to pay off company debts.

But Methvin, who invested

$70,730 of his own money in the firm, believes that the company’s products will find a spot in the troubled minicomputer market. The company plans to sell its machines to other computer makers, who would then market them under their own names.

The $30-billion minicomputer market is being squeezed on both sides by high-performance personal computers and low-end supercomputers, but Methvin said the industry is too large to be written off.

Methvin said Davin’s machines would sell for about $10,000 and compete with minicomputers made by Digital Equipment Corp. and other manufacturers costing $100,000 and up. The company plans five different models.

Methvin has been trying to get the company off the ground since September, 1985, when he acquired rights to the technology from Computer Automation, which recently moved its corporate offices to Texas. The company has invested $3.2 million in developing prototypes.

The company has permission from state regulators to sell its stock only in Colorado and New York, Methvin said.

“We flogged and flogged the last issue, but it died,” Methvin said. “We have to get this issue going or find money elsewhere or shut down.”