Computer-firm results likely to be mediocre: Hewlett-Packard expected to be exception; hopes rise for an IBM upturn

Article Abstract:

Spring 1992 quarterly earnings are likely to be mediocre for major computer industry players. One exception to the trend is HP, which is expected to report a 9.5 percent increase on revenue of $4.08 billion for its fiscal second quarter. IBM, recovering from a poor performance in 1991, is returning to profitability, although market observers do not predict dramatic improvement. DEC reported a loss of 294.1 million for its fiscal third quarter, more than twice the loss predicted. New-generation computer firms are expected to report significant increases in revenue, however income will be largely negated by a shrinking profit margin. Apple is expected to report a sales increase of 11 percent on $1.77 billion, while net profit is expected to increase only slightly. Compaq suffered a loss of 62 percent of its stock price, which finished its fiscal first quarter at 48 cents a share, down from $1.26 a share. Sun Microsystems Inc will continue to realize increased revenue, but profitability is suffering because of price cutting in the Unix workstation market segment.

Prepackaged software, Instruments to measure electricity, Computers, peripherals & software, Compaq Computer Corp., CPQ, Sun Microsystems Inc., Hewlett-Packard Co., SUNW, HWP, Sales, Revenue, Digital Equipment Corp., DEC, Third Quarter, Financial Report, Losses, Second Quarter

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Computer firms continue to feel recession pain; analysts call latest quarter dismal, but say results could get better soon

Article Abstract:

The US recession continues to hurt the computer industry, with poor earnings reported sluggish in the fall 1991 quarter. While companies such as Dell Computer Corp and AST Research Inc gained market share through early 1991 and will have increased sales and earnings over the same quarter in 1990, the numbers will be flat compared to the last quarter. Dell's net income is expected to be $12.4 million, same as summer quarter; AST reported net earnings of $16.5 million for the quarter ended Sep 27, 1991, down 19 percent from the previous quarter. Despite growing demand, Apple has a lower profit margin and profits were down in the qtr ended Sep 27; net income was $81.2 million, compared with $98.5 million the year previous. IBM's net income dropped 85 percent to $172 million from $1.1 billion the year previous.

Dell Inc., DELL, Corporations, Corporate finance, Financial Analysis Software, Recession, Computer Industry, AST Research Inc., ASTA

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