Article Abstract:
DEC reported $160 million in earnings in the fiscal 4th qtr, the third consecutive profitable quarter for the third largest computer maker, which faced losses totaling almost $4 billion since 1991. DEC's net income per share reached $1.01 as a result of the positive earnings. The good news for the troubled company pushed its stock prices up $2 to $40.375 on Aug 1, 1995. Stock analysts also applauded DEC's expected deal with Microsoft in which Microsoft will lend DEC funds to provide Windows NT training for DEC's technicians. Analysts were pleased with the earnings results, but DEC's revenue growth for the quarter was weak. Revenues reached only $3.75 billion compared to $3.92 billion for the 4th qtr 1994. The poor revenue results could spell trouble for the future, but DEC contends that its product offerings will increase revenue in the near future. DEC's resurgence was accomplished by careful cost cutting, including a 50% workforce reduction, and its technically advanced product offerings.
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Article Abstract:
DEC is reporting a $432.8 million 4th qtr loss that resulted in a loss for its fiscal year 1996. The quarterly loss resulted from a $492 million charge related to layoffs, otherwise the company earned $59 million, which is just below analysts' predictions. DEC is planning to buy back up to 10 million shares of its stock, which has lost over half of its value since January. The company will use its cash reserves to purchase the stock, which will be 6 percent of the company's outstanding stock. DEC's finances were affected by poor PC sales, a decrease in the European market, and currency-translation problems. The company's 4th qtr revenue was $3.72 billion; expenses increased to $880 million. DEC reported six consecutive quarters of profitability before this quarter. The company's loss for its fiscal year was $111.8 million.
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Article Abstract:
DEC announces a better-than-expected net income of $124 million for fiscal 3rd qtr 1996, a rise of 68% from the $74 million posted for the same period in 1996. The earnings come despite a meager revenue increase of 4% to $3.62 billion for the quarter. The increased profitability is an indication of DEC's ability to compensate for the industrywide decline in PC volume by improving sales of its more lucrative high-end products. DEC's stocks rose 9.5% on trading after release of the financial report, closing at $60.625 in composite trading. DEC also announces an agreement with Computer Associates (CA) of undisclosed nature, but analysts suggest that DEC will transfer selected software products to CA, giving DEC greater leverage in the system-management market.
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