Digital posts 1st-period loss, plans more cuts; it will accelerate the pace of reductions in staff; stock rises $1.375 a share
Article Abstract:
Digital Equipment Corp (DEC) reported a 1st qtr loss of $260.5 million for FY 1993, but its stock prices rose because the company expects to cut costs and reduce its losses in FY 1993. The company reported revenue of $3.31 billion for the 1st qtr. The results for 1st qtr of FY 1991 were earnings of $11.7 million, the equivalent of nine cents per share, and revenue of $3.29 billion. Sales declined 6 percent during the fiscal year, but higher revenue from service contracts pushed the total revenue up by one percent. The company's stock prices rose to $37.125, an increase of $1.375 in trading at the New York Stock Exchange of 805,600 shares. DEC decreased its workforce by 5,300 in the 1st qtr, a reduction of five percent, and plans to increase the pace of its layoffs in the 2nd qtr. Analysts expect that the company's finances will increase as a result in the reductions.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
DEC reports loss smaller than expected
Article Abstract:
DEC's stock jumps $7.375 to $42.25 in heavy trading on Jan 14, 1993, after the company announces a smaller-than-expected loss and a revenue gain for 4th qtr 1992, ending Dec 26. The company lost $73.9 million, or 57 cents per share, compared to a loss of $155.2 million, or $1.25 per share, in 4th qtr 1991. Revenue was $3.69 billion, up 6 percent from $3.48 billion in 4th qtr 1991. The latest loss is smaller than many analysts predicted, igniting hopes that a turnaround is being born at the company. Analysts are cautious, however, noting that DEC has had many problems since 1990. Favorable currency-exchange rates accounted for 4 percent to 4.5 percent of DEC's revenue increase. DEC reports cutting 6,400 jobs in the quarter, reducing its worldwide work force to 102,100. By the end of 1993, executives expect to have reduced the work force to 85,000 to 90,000.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Apple net fell 2.8% in fiscal first period. Autodesk forecast of earnings drop sends stock reeling. Ashton-Tate is cutting its work force 15% to 20%, predicting wider losses
- Abstracts: Lotus predicts lagging results for 2nd quarter: software maker is hit hard by price competition: stock takes 23% dive
- Abstracts: MCI posts 11% drop in 4th-period net as price-war fears hurt phone stocks. MCI posts loss of $176 million; charge is cited
- Abstracts: Digital stubs its toe kicking IBM mainframe. Digital begins to make cuts in work force; buy-out may be offered to up to 8,000; charge seen in fourth quarter
- Abstracts: Microsoft posts 64% profit rise for 1st quarter. Software makers to post gains for the quarter: analysts predict Symantec will show best results