Policy Management tries to recover from stock plunge; software company is hurt by possibility of health-care reforms

Article Abstract:

Policy Management Systems Corp, a supplier of health-care software and services, posted average annual earnings growth of 20 percent for years. But the company has seen its market capitalization plunge $894 million in the two weeks since Apr 5, 1993, when it announced that it would fall far short of its 1st qtr earnings projection. One big problem is the possibility of health-care reform from the White House. Uncertainty is causing health-care insurers to postpone purchase of software and computers. The mean earnings estimate for the year by Wall Street analysts is now $2.48 per share, down from $2.97 before Apr 5. Policy Management Systems plans no cutbacks in its workforce or in its $90 million research and development budget for 1993. On Apr 16, Policy Management shares on the New York Stock Exchange closed at $45.875, down from $85 when the company announced the bad news.

Computer related services, not elsewhere classified, Computer software industry, Software industry, Software, Finance, Medical care, Company Profile, Policy Management Systems Corp., Outlook, Health Care, Market Value, Reduction

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Tech Data unveils diversification plan, adding software to its computer items

Article Abstract:

Tech Data Corp plans to sell more than 1,500 software packages in addition to the hardware, disk drives and peripherals it has sold in the past. The company hopes to boost sales and revenues by adding at least 40 new companies to the list of companies Tech Data handles in its distribution business. The software expansion comes after customers had requested that Tech data distribute software titles. Tech Data also recognized the need for one-stop shopping. While some industry analysts view the move as a long-awaited and necessary shift, others noted that Tech Data does not yet offer products from some of the major software publishers such as Microsoft, Borland International Inc and Lotus Development Corp. Tech Data believes that it can attract these companies after it proves its success with smaller software packages.

Computers, peripherals & software, Planning, Tech Data Corp. (Clearwater, Florida), TECD, Sales management, Software Packages, Strategic Planning, Distributors, Expansion, Distribution Agreements

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Many Comptronic customers, suppliers stand by firm after it disclosed scheme

Article Abstract:

Suppliers and customers of Comptronix Corp continue to do business with the company despite its disclosure of its top executives' scheme to overstate profits. Following the disclosure, Comptronix stopped paying some of its suppliers for a brief period. Officials of Hamilton/Avnet, a Comptronix supplier, say that they are still selling components to Comptronix and they are not requiring cash or a line of credit. Likewise, customers such as Advance Transformer Co, Adtran Inc, Pesa Switching Systems Inc, Northern Telecom Inc and Computone Corp say they have no plans for pulling their accounts.

Printed circuit boards, Accounting, Customer service, Manufacturers, Vendors, Financial Report, Comptronix Corp.

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