Merisel Inc., strapped for cash, can't bury its troubles; sale of overseas units does little to relieve computer wholesaler's debt
Article Abstract:
Merisel's financial problems are continuing and the company's sale of its European and Latin American operations will not eliminate its debt. CHS Electronics Inc is paying $130 million in cash for the operations and will assume an additional $30 million of debt. Merisel owes around $219 million that needs to be paid within six months. The agreement must be approved by Merisel's bankers and creditors, and it is unclear as to how much of the money will end up in the company's bank account. Merisel needs some of the cash for operating capital. The European operations have been losing money, so Merisel will benefit from their sale. The computer wholesaler's business has decreased by 25 percent and the company is quietly dropping many of the hardware and software vendors whose products it sells. Competitors Ingram Micro and Tech Data have profited from Merisel's problems. Merisel's problems date back to 1990, when the company was formed as the result of a merger between Softsel Computer Products Inc and Microamerica Inc.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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H-P posts profit rise below forecasts, cites some slow computer, printer lines
Article Abstract:
HP's sales for its fiscal second-qtr ended Apr 30, 1997 were lower than analysts had expected them to be, with a net income of $784 million. The company's growth rate was the lowest it has been in years and many analysts were surprised that with its track record for steady performance HP still managed to miss so many of its financial targets. The company attributed the low to weak sales in key computer and printer lines. The earned only 75 cents a share during the quarter, when analysts had expected it to earn 80 cents. Revenue was up 4.7% from the previous year, to $10.34 billion. Orders were up 3% to $10.4 billion over 1996, which saw a 24% increase over the same quarter in 1995. PC sales were down from the 1996 second qtr, suggesting a slow down in HP's market share gain in the PC arena.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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Dell's profit leaps 52% as Asian sales soar
Article Abstract:
Dell Computer's fortunes continue to rise with profits for its 4th qtr ending Feb 1, 1998, increasing by 52% and its sales up 55%. The computer company's international sales grew rapidly during the year and included increased sales in Asia, despite the currency crisis in the region. Dell also saw an increase in its large market in North America, even though the company lacks an under $1,000 PC. Dell protected its average selling price by staying away from the low-price market. It's stock price tripled during the year and a 2-for-1 split was declared by the company's directors for shareholders of record Feb 27, which will be paid on Mar 6, 1998. Dell's computer design has been simplified over the past five years, improving the building and upgrading of them.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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