Computer firms expected to post a weak quarter

Article Abstract:

Industry experts expect computer firms to report little growth for the June qtr 1993. Computer sales for big systems are slow, and profit margins are small, and while microcomputer sales are strong, profits are small. IBM is among those companies that will report a June quarter decline in revenue, with analysts predicting 7.4 percent less revenue to $15 billion from $16.2 billion. DEC, on the other hand, is expected to report a profit for the first time in eight quarters, with earnings of as much as $1.25 per share and an increase in revenue from $3.91 to $3.96 billion. HP's fiscal 3d qtr net is expected to be $1.30 per share from $191 million. Dell Computer anticipates taking a $75 to $85 million charge but a rise in sales of 55 percent to $710 million. Apple lost $188.3 million in its fiscal 3d qtr following an aftertax charge of $198.9 million. Compaq remains profitable.

Prepackaged software, Computer peripheral equipment, not elsewhere classified, Compaq Computer Corp., International Business Machines Corp., Hewlett-Packard Co., Dell Inc., Growth (Physiology), Apple Inc., Growth, Second Quarter

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Digital records huge charge of $1.1 billion; move hurt quarter, year, but sales strength seen; stock price jumps $2.875

Article Abstract:

DEC reports a $1.1 billion charge because of cost reductions for the 4th qtr of 1991, which ended on Jun 30, 1991. DEC's charge will translate into a loss, both for the quarter and for the fiscal year. DEC reports a loss of $871.3 million, or $7.08 a share for the quarter, compared with a loss of $256.7 million, or $2.11 a share, after a $400 million charge for restructuring, in the same period last year. The company's charge for 1991 will cover expenses for reducing DEC's 121,000-person staff by about eight percent, or 10,000 people. DEC's stock was up $2.875 on Thursday, Jul 26, 1991, closing at $69.875 a share.

DEC, Cost control, Cost Reduction, Stock, Fourth Quarter

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