Hewlett earnings to drop; omen for computer stocks?
Article Abstract:
HP reports that its earnings for the third fiscal quarter ending Jul 31, 1996, will be lower than its second quarter earnings, in an announcement that reflects a general trend in the industry. In the second quarter, HP earned $723 million from revenues of $9.88 billion. The company attributes the expected drop to a decline in orders. HP will close its disk-drive plant in Boise, ID, which has 1,600 employees and a second plant in Malaysia that has 500 employees. The company will try to place the workers in other jobs internally. HP's news comes within days of a Motorola report of lower-than-anticipated earnings, and the stocks of other chip vendors are also falling. HP's stocks closed at $86 in after-hours trading on Jul 10, 1996, down $3. Separately, AMD announced it lost $34.7 million in 2nd qtr 1996, more than analysts had expected. In 2nd qtr 1995, AMD had $80.7 million in earnings. The company attributed the 1996 loss to slow memory chip sales and delays in its Pentium clone production.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Will computer stocks stay fired up in 1995?
Article Abstract:
Consumers helped push the price of computer stocks up during 1994 with their buying spree, while businesses remained conservative with their purchase orders. Consumers increased their purchases of computer hardware 40 percent in 1994, while businesses increased their purchases by just 5 percent. The American Stock Exchange's computer technology index increased 22.6 percent in 1994, compared to a 2.1 percent increase in the Dow Jones industrial index and a 1.5 percent loss for the Standard & Poor's 500 index. Some industry analysts report that if consumers fail to maintain their market momentum, business customers probably will take up the slack because of strong demand in Asia. European demand for computer-related technology may also increase as Europe emerges from an economic recession. Computer industry analysts report some of the hotest technology areas include digital video products and computerized consumer merchandise.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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4th-quarter comeback for Big Blue; stocks draw strength from I.B.M.'s results
Article Abstract:
IBM has announced a 39% increase in earnings for 4th qtr 1995, putting to rest fears that the company had made a mistake in acquiring Lotus and bolstering technology stocks across the board. The world's largest computer company netted $1.7 billion for 4th qtr 1995, including a $663 million charge and a $175 million gain associated with the sale of its Federal Systems Co. Without the charge and the gain, earnings reached $2 billion, a 65% increase over the $1.2 billion made 4th qtr 1994. The gross profit margin was 41.9%, compared to 40.6% for 4th qtr 1994. Hardware sales, including mainframes and PCs, grew 8%, while software sales increased 9%, due in part to the sale of 1.2 million copies of Lotus Notes. IBM's services business saw revenues increase 25% to $4.1 billion for the quarter, while total service revenues for 1995 were $12.7 billion. IBM ended the year with $7.7 billion in cash.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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