Article Abstract:
Business is bad for computer manufacturers, and a fall-off in demand combined with a price war are making a bad situation worse in the quarter ended Jun 30. Industry leaders IBM and DEC have warned investors about lower profits and slow sales. One industry analyst says IBM will earn only $105 million, or 18 cents a share before a charge, and the charge could reduce net income by another eight cents a share. IBM reported a profit of $1.41 billion, or $2.45 a share, in the 2nd qtr of 1990. HP is one of a few companies that are doing well in spite of the trend. An industry observer expects the company to earn $214 million, or 85 cents a share, which compares with $178 million, or 85 cents a share, in 1990. Revenue is expected to grow to $3.68 billion, from $3.24 billion. Apple is experiencing narrowed profit margins because of the company's pricing strategy. Compaq is also pressured by price cuts.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Alliant Computer Systems Corp, a manufacturer of minisupercomputers, is expected to report net income of $1 million on revenue of $19 million for its FY 1989 4th qtr. In the 4th qtr 1988 Alliant posted a loss of $27.5 million. The company has seen 'very strong interest and a significant order rate' for its new reduced instruction-set computer chip-based supercomputer that allows parallel processing. The new supercomputer is unlike any other product in Alliant's line. During 1989, Alliance also signed a technology and licensing agreement with Intel Corp. The agreement includes a $3 million investment by Intel. Intel is most interested in Alliant's software compiler and in a proposed software standard developed by Alliant. The recent introduction of an Intel supercomputer will not affect the agreement because the two products are aimed at different market segments.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
DEC reports net income of $113.2 million, or 85 cents per share, on revenue of $3.91 billion for 4th qtr FY 1993. Even though the profit is DEC's first since 1991, investors worried about the sustainability of the company's turnaround drove down the stock 62.5 cents to $37.25 in heavy New York Stock Exchange trading on Jul 28, the day the results were announced. In 4th qtr 1992, DEC reported a loss of $1.86 billion, including a $1.5 billion restructuring charge, on revenues about equal to the 1993 quarter's. DEC reports good sales in the United States and Asia, but continues to suffer in Europe, where the company gets half its sales. DEC Pres Robert B. Palmer says sales were strong is such key areas as software, data-storage devices and consulting. DEC's new Alpha family of computers has not yet contributed significantly to sales.
User Contributions:
Comment about this article or add new information about this topic: