Digital net fell 44% in quarter; revenue stalled; results are below analysts' forecasts, reflect woes of computer industry
Article Abstract:
DEC announces 2nd qtr 1990 profits fall 44 percent while net income is down to $155.4 million from $279.6 million in 1988. The results fall short of analysts expectations and cause DEC's stock to drop $5.875, closing at $82 a share. Analysts say DEC's future does not look promising, citing the slowdown in the US computer market and the deterioration of DEC's core minicomputer business. A company spokesman agrees that the next few quarters will not be easy due to costs associated with the introduction of the VAX 9000 mainframe computers and DEC's continued investments in software and service. Analysts say DEC is still a solid company and they hope for a turnaround when shipments of the VAX 9000 begin in the 4th qtr 1990.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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DEC net fell 32% in quarter, sales rose 6.4%; results for fiscal 1st period lead analysts to predict weaker results ahead
Article Abstract:
Digital Equipment Corp (DEC) reports a 32 percent decline in net income in the 1st qtr, to $150.8 million ($1.20 a share), from $223 million ($1.71 a share) in 1988. DEC's shares rose $1.375 to $89.75 on New York Stock Exchange trading on Oct 19, 1989, but analysts note that against a backdrop of a 40 point rise in the Dow Jones Industrial Average, DEC's modest increase is not necessarily a sign of strength. DEC is in a transition period, trying to reduce dependance on minicomputers, shifting to mainframes and workstations. Some analysts foresee weak results ahead.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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DEC profit fell 90% in 3rd period after charge
Article Abstract:
Digital Equipment Corp (DEC) reports that 3rd qtr profit fell 90 percent, after a $150 million charge. Wall Street analysts are relieved that results were not worse, and DEC's stock advanced. DEC posted net income of $24.9 million, or 20 cents a share, after a charge of $150 million, or $1.20 a share, related to work-force reduction costs. A year earlier, net was $256.4 million, or $2.05 a share. Revenue was up 4.3 percent for the fiscal 3rd qtr, ended Mar 31, 1990, to $3.26 billion from $3.13 billion. DEC's shares rose $2.125 on Apr 19, closing at $82.125.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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