XEBEC <XEBC> TO REPORT 2ND QTR LOSS
Xebec Corp said it expects to
report a loss for its second quarter ended April three, due
principally to a decline in sales to International Business
Machines Corp <IBM>, the company's largest customer.
    Xebec also said it expects revenues to total about 23 mln
dlrs.
    The company reported a second quarter loss last year of 1.9
mln dlrs, or 14 cts per share, on 23.9 mln in revenues.
    Xebec said IBM has historically accounted for about 50 pct
of the company's revenues, but that total fell to 20 pct during
the quarter just ended.
    IBM had used Xebec's hard disk drive controller products in
the IBM PC/XT, a product which IBM is phasing out.
    Xebec said it intends to continue streamlining its
operations in light of the loss of business.
    The company also said it has already consolidated two of
its plants in Nevada and it now plans to sell unused and
surplus assets to provide additional liquidity.
 Reuter
