Bridge Over Troubled Water: Gear Maker’s Outlook Cloudy
By ANDREW SIMONS
Is it a Bridge to nowhere?
That’s what investors have been asking about Garden Grove-based Bridge Technology Inc.,especially after the computer products maker and distributor expressed doubt about its chance for profitable results in the coming year.
The cloudy outlook comes despite some heady growth in the past three years. During the period, Bridge’s sales climbed 270%, good for the No. 8 spot on the Business Journal’s list.
For the 12 months ended June 30, Bridge counted sales of $133 million.
Bridge, which went public in 2000, debuts on this year’s list.
The company ranked No. 139 on the 2002 Deloitte & Touche Technology Fast 500, a ranking of fast-growing technology companies. Bridge earned the spot based on a five-year sales gain of 3,115%.
Bridge makes and ships computer power supplies, enclosures and other gear for companies around the world.
The company started making and distributing computer gear in 1997, adding networking products in 1999. It has operations in Asia as well.
But after aggressive growth through acquisitions, Bridge has slowed in the past two years along with the struggling technology industry.
Sales for the June quarter fell 23% to $26.6 million vs. a year earlier.
The company has been beset with a host of issues, including Nasdaq’s threat to delist it because the company’s stock price is below the buck minimum.
Earlier this month, two directors told the company they couldn’t serve anymore because of medical reasons.
In a filing with the Securities and Exchange Commission, Bridge officials in August said recent losses raised doubts about whether the company could find enough financing to stay in business.
The company says it has taken steps to try to improve its chances of getting profitable.
In July, the company signed a loan extension for its outstanding balance of $4 million from last year.
Bridge said it pledged 65% of all issued and outstanding shares in its Hong Kong-based subsidiary CMS against the outstanding balance.
Executives have said they’re talking with Bridge’s major shareholders to convert a portion of the company’s debt into equity to bolster working capital.
Bridge also has said it plans to cut or curb expenses and focus on improving sales of its Autec Power Supplies unit.
The company is also seeking a global financing agreement with an international bank to replace its credit lines in the U.S. and Hong Kong. Chairman Winston Gu owns 20% of Bridge.
