Archive Corp.Archive Corp. of Costa Mesa said...

Archive Corp.

Archive Corp. of Costa Mesa said Monday that it now expects lower than anticipated earnings for the first quarter of fiscal 1985 because of the costs incurred in upgrading its production techniques and the company’s temporary inability to manufacture its data storage systems at full volume.

While total revenue for the period, which ended Jan. 4 is expected to exceed the $10.7 million reported for the fourth quarter of fiscal 1984, earnings will reflect a significant decrease from the fourth quarter’s profits of $687,000, according to Joseph Martin, Archive’s vice president for finance.

Martin said Monday, however, that both revenue and earnings for the first quarter of 1985 are expected to exceed the $11,000 in earnings and $7.8 million in revenue posted for the first quarter of 1984. The production problems are expected to continue cutting into profits during the second quarter, but Archive officials anticipate a return to “normal” earnings by the third quarter, Martin said.