IBM is expected to post higher profit; Hewlett-Packard gains are forecast

Article Abstract:

The computer industry remained strong during the 1995 summer quarter, but manufacturing problems harmed IBM and Apple's sales. IBM's manufacturing problems resulted in sales slightly short of an earlier estimate, but, overall, revenues increased. Most estimates remove the impact of IBM's Lotus Development acquisition since this transaction is likely to involve one-time charges. HP ends the 4th qtr with booming sales and continued high demand for large computer systems and workstations. DEC continues its turnaround with rising stock figures and increasing industry confidence in its server and networking product sales, but recent corporate activities reflect cost cutting rather than revenue strengthening endeavors. Compaq reports 24% earnings growth over the same period in 1994. Apple's manufacturing troubles, which ranged from component shortages to a laptop recall, resulted in low industry estimates.

Microcomputers, Compaq Computer Corp., CPQ, Microcomputer industry, International Business Machines Corp., IBM, AAPL, Hewlett-Packard Co., HWP, Apple Inc., Company Financial Information, Company Earnings/Profit

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DEC reports loss, and stock takes beating

Article Abstract:

DEC's $65.9 million loss for its 1st Qtr ending Sep 28, 1996, is larger than expected. Product sales declined 16% to $1.52 billion for the period and revenue dropped 11% to $2.91 billion. The company's stock price dropped 16% on the news and analysts are raising questions concerning DEC's long-term growth in a highly-competitive market. The drop in sales may indicate the company's proprietary Alpha microprocessor is losing its technological advantage over competing processors. DEC blames the decline in sales on problems its sales personnel experienced in adjusting to a new strategy during the quarter. The company's expenses were flat for the quarter and DEC increased its cash reserve to $2 billion. The company laid off 2,000 workers and plans to lay off another 4,000 to reach its goal of 53,000 employees by the end of 1996.

Electronic Computer Manufacturing, Minicomputers, Company losses

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