Article Abstract:
Wang Laboratories Inc post its first profit in seven quarters with net income of $2.6 million for the 1st fiscal quarter ending Sep 30, 1990. Net income for the period, which was better than expected, was $2.6 million, or 2 cents a share; the computer maker took a loss of $62.1 million, or 38 cents a share, after restructuring charges of $12.9 million for the same period in 1989. Revenue for the period fell 5 percent to $571.5 million from $604.8 million for the same period in 1989. Operating income before interest and taxes climbed to $12.6 million compared with a loss of $30.1 million for the same period in 1989. The company reported that its proprietary system were selling well, which means that companies are betting on Wang's survival in the marketplace.
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Article Abstract:
Wang Laboratories Inc reports a net loss of $10.5 million and a 12 percent decline in revenue for 2nd qtr 1990 despite a one-time gain of $116 million from the sale of assets. Wang states it was able to reduce its heavy debt load from $575 million in Aug 1989 to $308 million by Dec 1989. Revenue from continuing operations is $637.7 million, down from $722.2 million for the same quarter in the previous year. Wang claims it is on the right track in its efforts to restructure long-term debt and reorganize operations, but it expects losses to continue through the fiscal year that ends Jun 30. Wang also claims that no new layoffs are anticipated, but that the work force will continue to shrink through attrition and retirement.
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Article Abstract:
Wang Laboratories Inc, which was once a major computer industry leader, filed for protection under Chapter 11 of the US Bankruptcy Code and now symbolizes the rapid decline that could strike any computer company that does not keep up with industry trends. In 1989 Wang was ranked number 146 in the Fortune 500 list of major corporations, with more than $3 billion in annual revenue. The company's stock value has fallen from a high of $5.6 billion to the current $70 million. The company employed 31,500 employees at its peak, but has shrunk to 8,000 employees in 1992. CEO Richard W. Miller hopes that the filing will allow the company to re-enter the computer industry as a smaller and more focused organization.
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