Nashua Corporation, Nashua, NH, had fourth-quarter net loss of $0.5 million, which included a charge to discontinued operations of $2.3 million. The net loss for the comparable period in 1997 was $2.4 million, which included a loss from discontinued operations of $1.1 million, mainly attributable to the company’s business to exit the photofinishing business. Sales for the fourth quarter of 1998 were $40.8 million, compared with sales of $42.9 million in the fourth quarter of 1997. The quarter and year ended December 31, 1998.
In a statement, chairman, president and CEO Gerald G. Garbacz said that the Imaging Supplies division, which sells toner and developers, was taking steps to combat a drop in dealer-agent sales. Imaging Supplies restructured this channel in January by increasing direct sales activities and canceling a number of agent relationships.
For the year ended December 31, 1998, Nashua reported a net loss of $12.9 million, compared to a net loss of $8.8 million for the year ended December 31, 1997. Nashua reported a net loss from continuing operations for 1998 of $7.2 million, compared with a net loss from continuing operations of $6.2 million for 1997. Sales from continuing operations for 1998 were $167.8 million compared to sales of $173.2 million in 1997.
Results from continuing operations for 1998 included unusual charges of $15.0 million related to damages awarded to Ricoh Corporation in a patent infringement lawsuit. Nashua has appealed both the liability and damage rulings related to the patent infringement suit.
Nashua Corporation markets specialty imaging products and services to industrial and commercial customers. The company’s products include thermal papers, pressure-sensitive labels and specialty papers, as well as copier, ink jet and laser printer supplies.
