Parametric faces counterattack from upended rivals; upstart concern reaps success from software launched five years ago

Article Abstract:

Parametric Technology Corp has taken the market for mechanical-design software by storm. The company posted a net income of $21.1 million on $86.7 million in revenue in 1992, up from zero in revenue in 1988. Parametric's unique, easy-to-use and relatively inexpensive software threatened IBM, the leader of the $2.1 billion mechanical-design software industry, and Computervision Corp, the second-place firm. Parametric is the most profitable of all major software publishers and its stock is trading at a stunning 44 times estimated 1993 income. Parametric faces threats, though, especially from Autodesk Inc, which makes rival software for microcomputers, while Parametric's runs on more powerful workstations. Worried about the Autodesk threat, Parametric made a bid to merge with the firm in 1992, but was turned down. Parametric's technology was largely developed by founder and Chairman Samuel Geisberg, a geometry professor at Leningrad University in the old Soviet Union before emigrating in 1974.

Computer programming services, Software, Computer-aided design, Computer aided design, Parametric Technology Corp., Financial Analysis Software

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Major computer companies struggled with weak revenue growth in 3rd period

Article Abstract:

Low world-wide demand, especially in Europe, slowed revenue growth for large computer corporations in the 3rd qtr, FY 1992, causing confusion among analysts as to net income estimates for the companies. IBM announced earnings of $177 million, the equivalent of 31 cents per share, for the quarter, and revenue of $14.4 billion. HP is expected to post earnings for fiscal 4th qtr at $115 million, the equivalent of 45 cents per share, whereas it reported $125 million earnings, the equivalent of 50 cents per share, for the 4th qtr of the previous year. Sun Microsystems Inc will be reporting higher sales but lower earnings. Apple Computer Inc's net income is estimated to be strong, although analysts believe that profit margins are being squeezed. However, Compaq is planning on increased 3rd qtr earnings, as compared to its 2nd qtr results. Many companies are cutting their workforce.

Electronic computers, Industry Overview, Computer industry, Finance, Growth (Physiology), Forecasting, Revenue, Growth, Trends, Third Quarter, Hardware Vendors, Financial Report

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Growth stunted success at Phoenix Technologies

Article Abstract:

Phoenix Technologies Ltd is faltering. The company lost $4.9 million in the quarter ended Dec 31, 1989, compared with a profit of $2.86 million in the year earlier period. And the company expects another loss for the quarter ended Mar 31. Sales are down 47 percent to $7.8 million from $14.6 million a year earlier, the company has cut its work force by more than a third, and Phoenix faces the possibility of a hostile takeover. In the mid 1980s, Phoenix was doing well, supplying basic input-output software to operate millions of IBM-compatible microcomputers. But according to at least one industry observer, Phoenix itself blew an extraordinary strategic advantage and ventured into untested waters by concentrating on software for the UNIX operating system. Phoenix is seen as a classic case of a small company led astray by its own success.

Computer Software Industry, Financial Stability, company profile, Colvin, Neil J., Phoenix Technologies Ltd., PTEC

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