Shares in En Pointe Technologies Inc. dropped more than 20 percent Thursday after the company reported decreases in profits and sales.
En Pointe reported a second quarter loss of $3 million (-42 cents per share) compared to a profit of $213,000 (3 cents) in the same period a year earlier.
Sales for the Gardena-based IT hardware and software provider decreased 5.3 percent to $70.6 million.
“After reviewing our investments, a non-performing investment was written-off in full. That write-off, along with the expenses related to it, our move to corporate headquarters, and some exceptionally high legal charges in combination reached $1.6 million for the quarter,” Bob Din, En Pointe’s chief executive said. “We are not satisfied with the negative impact that our expenses have had on our bottom line profitability and intend to fully address reducing certain operating expenses going forward.”
Shares in En Pointe were down 21 percent to $2.20 in early trading Thursday, hitting a 52-week low of $1.74 earlier in the day.