H-P combines computer units under Belluzzo

Article Abstract:

HP has consolidated its computer and computer-support operations into a single unit called the Computer Organization in response to the rapid convergence of computer markets. The company also named 20-year HP veteran Richard E. Belluzzo executive VP for the new unit, making him only the second executive VP at the company. Only CEO Lewis E. Platt ranks higher than Belluzzo. Belluzzo joined HP in 1975 as a bookkeeper. He is unique because he is one of the few HP executives without an advanced degree. Belluzzo is credited with pushing HP to stop attempting to develop its own printer engine technology and buy printer engines directly from Canon. The move allowed HP to use a higher-quality engine than its own and concentrate on adding functions and marketing products. The strategy became a hugely profitable enterprise for HP. The new Computer Organization unit will include products such as workstations, semiconductors, network software and servers.

Management, Hewlett-Packard Co., HWP, Reorganization and restructuring, Company Operations, Company Employee, Company Restructuring/Company Reorganization

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Multimedia start-up 3DO gets a vote of confidence from investors in IPO

Article Abstract:

Investors push up 3DO Co's stock from the initial public offering price of $15 to $20.25 in national over-the-counter trading on May 4, 1993. The multimedia start-up had originally planned to offer 2.1 million shares, but boosted that figure to 2.9 million shares because of investor interest. 3DO is developing complex computerized home entertainment centers and is probably years from showing a profit. But the company and its CEO, Trip Hawkins, have convinced many, including Hollywood director Steven Spielberg, that it is leading the way to a coming multimedia revolution. Some observers say that both multimedia and 3DO have been over-hyped and were waiting for the market's reaction to the public offering. 3DO still faces stiff competition from such giants as Microsoft, Apple, Nintendo Ltd and Sega Enterprises Ltd. Despite the success of the public offering, 3DO's prospects remain hard to assay.

Household audio and video equipment, Patent owners and lessors, Consumer electronics industry, Consumer electronics, Multimedia systems, 3DO Co., Outlook, Interactive Systems, Market Value, Multimedia Technology, Public Offerings

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Sinking chips; tech stocks' decline may be overreaction, but problems are real; despite industry's strength, weaker prices and profits feed investors' concerns; Microsoft's dreaded 'S' word

Article Abstract:

Analysts do not expect the computer industry's robust earnings and stock market growth of 1995 to continue unabated in 1996, suggesting that fear of an imminent collapse will cause many high-tech investors to divest completely. Industry forecasts for growth and profit remain extremely favorable, generally between 15% and 40%, but investors continue selling the volatile high-tech stocks in anticipation of an eventual fall. However, legitimate reasons for investors to be wary of technological stocks' future do exist. The computer industry's extremely competitive pricing system has lowered margins to minimal rates, requiring massive sales of products in order to realize moderate profits. Also, the most powerful companies continue to increase their stake in the market, acquiring start-up, promising companies before they can pose a viable threat to profitability.

Stocks, Forecasts and trends, Industry trend, Market trend/market analysis, Stock markets, Stock Market

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