Digital Equipment's operating earnings rise in quarter; revenues shrink during the period
Article Abstract:
DEC reported a rise in operating earnings during its fiscal fourth qtr ended Jun 28, 1997. Its net income for the quarter was $124 million, or 75 cents a share up from the $433 million loss, or $2.87 a share, in the fourth fiscal qtr of 1996. Wall Street analysts had expected the company to earn 73 cents a share during the quarter. Stocks rose $2.8125 a share to $42.5625 when DEC released its earnings report. The company's PC business grew by 12% during the quarter creating impressive profits. Alpha, DEC's microprocessor, had an increase in sales of 15% over the third fiscal quarter of 1997. Nearly all of the quarter's gains resulted from improved operations and asset management. Gross profit rose to a three year high of 34.6% over 32.6% in 1996.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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Profit at Digital Equipment fell 59% in third quarter; even so, performance exceeds forecasts
Article Abstract:
Despite a 59% drop in profits, DEC was still able to surpass analysts' low expectations for the company. DEC reported earnings of $51 million, 27 cents per share, during its 2nd qtr ended Mar 29, 1997. One of Digital's main problems has been the slow sales of its systems that are based on DEC's Alpha microprocessor. A 12% decline in revenue from DEC's Alpha-based products occurred during the 3rd qtr compared to 3rd qtr 1996. Competitors, such as Sun Microsystems, experienced double digit growth during the quarter. DEC bought back 4.5 million of its shares during the quarter, at a total price of $160 million. The company plans to purchase another 4 million shares during the 4th qtr.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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