Digital posts loss totaling $294.1 million: computer maker's shares plunge 9.8% as deficit is unexpectedly large

Article Abstract:

DEC reports a $294.1 million loss for the 3rd qtr ended Mar 28, 1992. As a result, stock prices have fallen 9.8 percent, and industry analysts predict a work force reduction. DEC has already trimmed 10,000 jobs, and Senior VP John F. Smith says the company will reinstate dismissals and other cost-reduction measures beginning in May 1992. DEC is evaluating a restructuring charge which would be combined with $1.65 billion in prior restructuring charges. DEC attributes its losses to an international economic slowdown, especially in Japan and Europe. The company also says that its larger computer systems, which have a high profit-margin, are not selling well. Some speculate that consumers are waiting for the release of DEC's Alpha microprocessor, currently under development, before making purchases. Sales on DEC's lower-profit-margin microcomputers remain high. Despite significant losses, DEC's overall finances remain strong, with very little debt and $1.5 billion in cash on hand.

Finance, Profits, International trade, Digital Equipment Corp., DEC, Cost control, Cost Reduction, Third Quarter, Profit, Stock, Financial Report, Losses, Work Force Reduction

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Technology

Article Abstract:

Four mini-articles discuss new medical equipment, desktop video products, airplane telephone services and touch-screen technology innovations. Futrex is developing a palm-sized glucose reader for diabetics. Boston Advanced Technologies is developing a fingertip monitor that tests for oxygen, glucose and cholesterol. Somanetics introduces a device that measures brain oxygen. Avid Technology introduces a $14,000 desktop video system that transforms videotape into computer data that can be stored on disk. Adobe Systems Inc offers a $696 video editing program. Apple and Microsoft are both developing video-oriented software packages that make use of compression technology. GTE and In-Flight Phone are independently working to create better telephone services on airplanes. MicroTouch Systems introduces glass touch pads designed to replace trackballs and mice in laptop computers.

Computer peripheral equipment, not elsewhere classified, Electronic parts and equipment, Surgical and medical instruments, Computer industry, Telecommunications services industry, Telecommunications industry, Column, Contracts, AAPL, Adobe Systems Inc., ADBE, Computer peripherals industry, Product enhancement, Touch screens, Avid Technology Inc., MicroTouch Systems Inc., Product Introduction, Product Development, Telecommunications Service, Enhancements, Touch Screen, In-Flight Phone Corp., Touch Sensors, Futrex Inc., Boston Advanced Technologies Inc., In-Flight Phone FlightLink (Telecommunications equipment)

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PCs with CDs have yet to compute: while hopeful, makers hesitate to plunge in

Article Abstract:

Although CD (compact disk) technology has caught the attention of computer users and manufacturers, the only microcomputer on the market with a built-in CD drive comes from Dutch electronics firm NV Philips. The consumer market for CD-equipped computers is being held back by the media's read-only technology and the high cost of CD hardware, which is on a par with the price of the computer itself. Hardware manufacturers are reluctant to enter the sluggish CD market, and software publishers are unlikely to create the CD software needed to drive the market until there is an installed base of hardware. Philips' computer, which will be bundled with a dozen software packages and a library including Microsoft's Bookshelf and Grolier's Encyclopedia, may serve to stimulate the market. A basic configuration is priced at $1,995.

Usage, Microcomputers, Equipment and supplies, International Business Machines Corp., Growth (Physiology), CD-ROM, CD-ROM disks, Philips Gloeilampenfabrieken N.V., Data storage media, Optical Memory, Growth, Microcomputer, Market Analysis, Storage Media

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