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Storm clouds are forming over Cumulus Corp., a Beachwood computer manufacturer that had built a reputation as high-growth company.
The personal computer maker in the past five years basked in the glow of explosive growth, as sales hit $116 million in 1991, compared to a modest $589,000 in 1987, its first year of operation. But this summer, the skies over Cumulus turned gloomy.
Cumulus, which makes WorkBox and Cumulus GL brand computers, this month furloughed 170 management and production workers, according to a former Cumulus manager who was part of the recent layoffs. Although current employment levels at the company couldn't be determined, it's clear the number of workers is down significantly from 350 Cumulus employees last May.
"Things began to go downhill early in the summer and last August they really got bad," according to the ex-manager.
It wasn't clear last week whether the company was still assembling products. Cumulus is considered to be the only company in the area that produces personal computers for the mass market.
Cumulus apparently has been caught in a PC market that is going through radical changes, including deep price discounting by major manufacturers. The discounting...