Computer firms will register earnings gains; latest quarter's advances tied to solid corporate and individual demand

Article Abstract:

Individual and corporate demand for computers, combined with increased demand outside the US, resulted in increased profits for major computer makers in the latest quarter. IBM's 2nd qtr earnings in 1995 were nearly double compared to the same period last year, up 15%, to 7.6 billion. IBM is profiting from increased interest in sophisticated networks. HP, the second largest computer maker, increased net income to $530 million in the quarter ending Jul 31, 1995, a 50% increase over 1994 income for the same time period. Strong demand for laser and inkjet printers combined with a large product inventory is spurring the growth. DEC, the third-ranked computer maker, showed a profit in its 4th qtr, which ended in Jun 1995. The recovery was not as strong as expected, but is better than the loss recorded in 1994. Revenue for DEC's 4th qtr is estimated to reach $3.96 billion, compared with the 1994 4th qtr revenue of $3.92 billion.

Microcomputers, Microcomputer industry, Statistics, Company Financial Information, Company Sales/Revenue, Company Earnings/Profit

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Computer makers' results to be sluggish; softer European demand, stronger dollar are cited

Article Abstract:

Computer manufacturers expect to post modest earnings for the second quarter 1996 due to slower US sales, a more robust US dollar and declining European PC demand. Analysts, however, report that strong company purchasing and new product introductions will increase earnings for the second half of 1996. A strong dollar indicates that revenues from international operations will decrease. Also, computer maker product shipments in the 4th qtr 1995 and the 1st qtr 1996 have increased inventory supplies in retail establishments. Those businesses will use most of the 2nd qtr 1996 to diminish their backlog before ordering more product in the second half of 1996. IBM's net income for the 2nd qtr 1996 will be $1.3 billion, a decrease from last year's $1.7 billion figure and revenues are expect to rise to $18.l billion from $17.5 billion. HP, however, will post strong earnings while DEC and Apple will report disappointing earnings.

Analysis, Compaq Computer Corp., CPQ, Forecasts and trends, AAPL, Sales, Apple Inc., Sales Analysis, Market Trend/Market Analysis

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Digital Equipment will lay off 7,000, take $475 million restructuring charge; shares tumble 12% as many on Wall Street thought problems were in past

Article Abstract:

DEC is eliminating 7,000 jobs and taking a $475 million restructuring charge for its 4th qtr 1996. The moves are the result of increasing losses in the company's microcomputer business and disappointing sales in Europe. The prices of DEC stock declined on the news as investors indicated a loss of confidence in the company's comeback. DEC suffered over $5 billion in losses between 1990 and 1994, but restructured and reported profitability in six consecutive quarters. DEC had reduced its employee level to 60,000 and believed this was the right size for the company, but the recent 12% reduction indicates the restructuring is not over. Enrico Pesatori, the head of DEC's computer division, resigned under pressure on July 1st. DEC's high-end computers have been gaining market share, but the PC business has been disappointing.

Company losses, Layoffs, Layoff

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