Egghead's net for 2nd period fell; chief quits
Article Abstract:
Egghead Inc reports that net income for 2nd qtr FY 1993, ending Oct 10, was $691,000, or 4 cents per share, down 75 percent from 2nd qtr FY 1992 net of $2.8 million, or 16 cents per share. Sales tumbled 6 percent to $140 million from $149 million in the year-earlier period. Gross margin fell from 16.4 percent to 14.3 percent. The company blames stiffer competition, fewer new products and flat sales to military and aerospace customers. Egghead's stock fell 25 cents to $10.625 in over-the-counter trading on Nov 18, 1992, after the results were announced. Egghead Pres and CEO Matthew Griffin resigns, but will remain a director. Chairman Ronald Erickson will replace Griffin temporarily until a permanent replacement can be found. Egghead opened 10 stores and closed three during the quarter, for a total of 199 stores.
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:
Egghead's woes multiply as another chief resigns; software retailer takes some hard knocks amid fierce pricing wars
Article Abstract:
Computer software retailer Egghead Inc's deep financial trouble is being underscored by the recent defection of company Chmn and CEO Timothy E. Turnpaugh. Egghead, once a Wall St high flier, is being bombarded by heavy price competition. Profit has decreased by nearly 50 percent, and for 1st qtr ending Jul 24, 1993, the company reported a loss of $2 million, or 12 cents per share, on revenue of $218.2 million, compared to a profit of $1.7 million or 10 cents per share, in the same quarter the year before. The quarterly loss is the result of a $4.4 million restructuring charge. Among the competitors that have done tremendous damage to Egghead are computer vendors that are bundling their hardware with software packages, and also mail-order outfits that advertise in computer magazines.
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:
Egghead stock slips on news that sales trailed forecasts
Article Abstract:
Software retailer Egghead Inc reports that its sales and earnings for fiscal 1st qtr 1993 were lower than projected, resulting in a decrease in stock prices. Sales for the quarter were $202 million, up 9 percent from the year earlier quarter. Earnings figures, to be announced later, are expected to be below the 18 to 36 cents per share that was predicted by market analysts. Egghead's poor performance is attributed to intense competition and shrinking retail profit margins. The bundling of Microsoft Corp's Windows is blamed for decreased sales of the graphical user interface, and the company is overstocked. Additionally, Egghead plans to open 192 outlets in North America, an action that is expected to cut further into profits.
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:
- Abstracts: Hewlett posts 44% rise in net for 3rd quarter; result trailed expectations as orders gain slowed in some overseas areas
- Abstracts: In niches, necessity can be the mother of reinvention; Zoom Telephonics, near collapse, created new product and new success
- Abstracts: Power glitches become critical as world computerizes; software industry emerges to prevent costly downtime from outages
- Abstracts: Reducing the need to keep canceled checks. What you should do if the IRS comes knocking. A higher mileage rate and an elevated wage base
- Abstracts: Conner says 3rd-period net rose, but results raise price-war fear. Once-battered Seagate gains in computer price war; disk-drive maker stuns Wall Street with big rebound in last 2 quarters