The Securities and Exchange Commission has accused Datametrics Corp. of Van Nuys, Calif., of juggling its books and reporting a profit when it actually suffered a loss.
Without admitting or denying the charges, the company and its officers signed a consent order agreeing not to violate SEC disclosure and reporting regulations in the future.
DMC manufactures high speed computer printers for military and civilian use. During 1980, the SEC alleged, DMC overstated its revenues and profits and reported net income of $427,000 when it actually had a loss of at least $220,000. DMC also understated its losses in the first and third quarters of 1981.
In November of that year, DMC raised $240,000 in additional capital through a non-public sale of convertible debentures. Investors were not informed of the company's true financial situation, the SEC said Monday. At the time the company's stock was trading over the counter in the $11 range; after the inaccuracy in the financial reports was reported, the stock dropped to $1 per share.
According to the complaint, DMC recorded as sold some printers that were actually out on consignment and claimed to have sold 125 printers that had not even been manufactured. The company also allegedly failed to establish a loss reserve for cost overruns on another contract.