Computer software firms are expected to post profit gains for fourth quarter
Article Abstract:
It is a good quarter for software companies, according to Charlotte Walker, an analyst with County Securities Inc. There are clear signs of strength, she says, especially among PC software companies. Microsoft Corp is doing particularly well. Richard G. Sherlund, with Goldman, Sachs & Co, estimates net income of $63 million, or $1.10 a share, on a 40 percent increase in revenue, to about $290 million. Lotus Development Corp is so confident that the company has deliberately cut sales to large distributors to eliminate excess inventory in the dealer channel. David Readerman of Shearson Lehman Hutton Inc says Lotus will report net income of $26 million, or 63 cents a share, up from the year-ago net of $9 million, or 21 cents a share. Opinions are mixed about Computer Associates International Inc: Charlotte Walker expects 'a dramatic recovery'; Richard Sherlund counsels caution.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Many software makers likely to report smaller profits for the fourth quarter
Article Abstract:
Continuing an industry-wide trend, microcomputer-oriented software publishers are expected to report stronger earnings than their mainframe- or minicomputer-oriented brethren for the 4th qtr 1990. While most software firms are feeling the squeeze of the recession, Microsoft Corp continues to grow rapidly. Microsoft is expected to report 4th qtr 1990 net income of $98 million compared with $74.5 million for the same period a year ago. Lotus Development Corp is expected to report its first ever net loss in last quarter of 1990, due mainly to a $40 million to $50 million charge it will take on the acquisition of Samna Corp. Ashton-Tate, a company in financial trouble recently, is expected to make a modest recovery in its 4th qtr 1990, but many analysts are pessimistic about the firm's long-term prospects.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Microsoft, Lotus are expected to lead software firms to solid quarterly gains
Article Abstract:
Computer software publishers Microsoft Corp and Lotus Development Corp are expected to post strong gains in the 2nd qtr of 1990. Microsoft continues to dominate in microcomputer software and is expected to post a net income of $75 million, or 62 cents a share, compared with $45.5 million, or 40 cents a share, for the same period in 1989. Microsoft's revenue is expected to increase 57 percent to $345 million. Lotus is expected to report a net income of $26 million, or 55 cents a share, for the 2nd qtr 1990 with sales rising about 35 percent to $180 million. Some analysts are concerned that Lotus will not be able to keep up its momentum for the second half of 1990.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Comment about this article or add new information about this topic:
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