Apple announces big loss and plans further layoffs; future of company is tied to Internet

Article Abstract:

Apple reported a $740 million loss for 2nd qtr FY 1996 and announced that it would lay off an additional 1,500 employees over 12 months as the company strives to return to profitability by 1997. The losses include inventory write-downs of $388 million and restructuring charges of $130 million. Apple's loss compares with $73 million in earnings in 2nd qtr FY 1995. Sales fell 18% to $2.19 billion in 2nd qtr FY 1996, down from $2.65 billion in the same quarter in 1995. Cash and short-term investments dropped to $592 million, down from $952 million at the end of FY 1995. Apple's stock closed at $25.25 on the Nasdaq exchange on Apr 17,1996, down 62.5 cents, but it gained 37.5 cents in after-hours trading. Analysts say that new Chmn and CEO Gilbert F. Amelio must move quickly to make the company profitable, and CFO officer Fred D. Anderson says that the company can reach a break-even point of $9 billion in revenues by 1997. Apple plans to focus on its multimedia technology and ease of use and to remake itself as an Internet company.

AAPL, Company losses, Layoffs, Layoff, Apple Inc.

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Dell earnings up 58% in new sign of vigor in PC market

Article Abstract:

Dell Computer's earnings increased by 58 percent in its 2nd qtr ending Jul 28, 1996, an indication that the computer industry is gaining strength. Analysts believe the industry is finally benefitting from corporate decisions to upgrade to Pentium Pro-based systems and to Windows NT applications. Other computer vendors reporting increased sales include Gateway 2000 and the CompUSA superstore. Dell reports earnings of $103 million, or $1.05 per share, for the quarter. Sales increased 40 percent to $1.69 billion for the period. European sales rose by 35 percent, led by a 60 percent increase in France and Germany. The company's profits benefitted from a large reduction in materials costs, particularly from lower-priced chips. The company's 57 percent annual growth rate does not reflect the perceived weakness in the PC market. The stock market reacted to the news by increasing the price of Dell's stock by $2.375 in after-hours trading.

Dell Inc., DELL, Company Sales/Revenue, Company Earnings/Profit

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Compaq's stock falls on results; drop spurs decline in technology area

Article Abstract:

Compaq stock tumbles from $5 to $37.375 in extremely active trading on Jan 25, 1995, after the company reports 4th qtr earnings that were a few cents less than analysts had expected. The Compaq downdraft leads a general sell-off of computer stocks, with HP, Dell Computer, IBM, Intel, AMD, Texas Instruments and Motorola also experiencing declines. Recently, other computer makers, including Apple and IBM, have seen their shares slide even after reporting financial results that surpassed analysts' expectations. Possible reasons include profit-taking by mutual-fund managers and generalized anxiety over the direction of the economy. Others say the Compaq report, though generally rosy, confirms long-held fears about a slowdown in the PC market. But some critics believe that investors overreacted. Compaq's entire shortfall can be attributed to the devalued Mexican peso.

Compaq Computer Corp., CPQ, Stock markets, Stock Market, Financial Report

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