CARDIS <CDS> EXPECTS SIGNIFICANT YEAR LOSS
Cardis Corp said it
anticipates reporting a loss from continuing operations of
approximately 17.7 mln dlrs on revenues of 228 mln dlrs for
fiscal year 1986.
    In addition, the company said it expects to report a
year-end loss on the discontinued operations of its engine
rebuilding divisions of approximately 1,100,000 mln dlrs.
    Cardis also said it expects to report a loss in excess of
five mln dlrs for its first fiscal quarter ended Jan 31, 1987,
on approximate revenues of 58 mlns dlrs.
    For fiscal 1985 Cardis reported operating income of
8,680,000 and net income of 1,150,000 dlrs, and in the first
quarter of fiscal 1986, it reported a 495,000 dlr loss from
continuing operations.
    The company said its auditor, Touche Ross and Co, has
indicated to it that any opinion it issues on the company's
soon-to-be completed year-end audit will be qualified.
    The company also said it expects to conclude soon its
current negotiations with its primary lenders for extension of
its loan agreements and expansion of its credit lines.
 Reuter
