Computer firm results likely to be gloomy; industry's quarterly data to reflect ills abroad, weak U.S. recovery

Article Abstract:

Sluggish economies abroad and in the United States are causing nervous analysts to cut their forecasts for computer firms' 1st qtr 1993 results. IBM and DEC are expected to report continued losses. Dean Witter analyst Jay P. Stevens expects falling mainframe sales to cause IBM to post a loss of $285 million, or 50 cents per share. Analysts predict that DEC will report losses ranging from $25 million, or 20 cents per share, to $47 million, or 36 cents per share. HP is expected to remain profitable, thanks in large part to booming laser-printer, workstation and multiuser-computer sales. Sanford C. Bernstein's Barry Willman foresees a net profit of $316 million, or $1.25 per share. Salomon Brothers' Lucianne Painter and other analysts cut their predictions for personal computer vendors, citing a continuing price war, capacity constraints and unfavorable currency trends.

Prepackaged software, Computer peripheral equipment, not elsewhere classified, International Business Machines Corp., Profits, Hewlett-Packard Co., HWP, Outlook, Profit, Reduction

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Digital net rose 9.2% is quarter ended Sept. 28; computer maker's revenue grew 6.5 %; stock price sinks on bleak outlook

Article Abstract:

DEC's 1st qtr financial report for the quarter ended Sep 28, 1991, shows net income rose 9.2 percent to $28.6 million and revenue increased 6.5 percent to $3.29 billion. Product sales remained flat compared to the same quarter the year previous, but service revenue increased 16 percent. Despite the positive report, the results were worse than analysts had anticipated, and DEC stock dropped $2.625 to close at $57.25. Tight control of costs helps account for the quarterly profit increase; DEC's employs 4,000 fewer people than it did the year previous and 5,700 fewer than in Jun 1991. To cope with weak foreign sales, which account for 62 percent of revenue, DEC cuts prices on its mainframe VAX computers by as much as 30 percent. A low-end model 110 VAX is down to $747,000 from $934,000. An anticipated new product line could also contribute to slow sales.

Mainframe computers, Corporation reports, Company reports, Sales, DEC, Price cutting, Mainframe Computer, Sales Analysis

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