General Kinetics to move to Northern Virginia

September 02, 1993|By Timothy J. Mullaney | Timothy J. Mullaney,Staff Writer

General Kinetics Inc. of Rockville said it will move its headquarters to Northern Virginia, and added that a long-delayed audit of the company's fiscal 1992 results is likely to result in an expansion of the $3.55 million loss the company reported for that year.

Chief Executive David Shaw said General Kinetics, which makes high-end secure facsimile machines and cabinets for electronic equipment, will move its headquarters to the Herndon area. The company must first settle on the location.

The 1992 audit was delayed because the company did not have the money to pay its auditors, Mr. Shaw said. General Kinetics now expects the audit to find that events occurring since the end of fiscal 1992 -- in May of that year -- indicate that the company's results are worse than first believed.

For example, he said, not all of the receivables the company was counting on when it reported unaudited results last year have been collected, requiring the firm to write them off.

Mr. Shaw declined to estimate how much the reported 1992 loss might grow or how big the fourth-quarter loss will be.

The company also said it will report that it lost money in the fourth quarter of fiscal 1993 after losing almost $1.6 million during the first nine months of the fiscal year.

The company also said that Gutzwiller and Partner AG, a principal investor in General Kinetics, has lent the company $2 million. Mr. Shaw said the money will be used for operating cash flow.

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