Silicon Graphics expects loss, and its stock dives
Article Abstract:
Silicon Graphics anticipates reporting a loss for its first fiscal qtr 1998. The computer manufacturer estimates revenues of about $760 million, down from $765 million in the comparable 1997 period. Silicon Graphics blames the net loss of approximately 20 cents a share on disappointing sales. The surprising announcement follows a solid 4th qtr 1997, when Silicon Graphics said it had resolved product-transition issues. Many investors are questioning Silicon Graphics' credibility and organization, since the company said in late Sep 1997 that it would meet Wall Street expectations. Silicon Graphics' sales are especially confusing in a strong economy that features a new company product line. Analysts say other workstation vendors, such as Sun and HP are providing serious competition for Silicon Graphics, rather than PCs powered by the Intel Pentium processor and the Microsoft Windows NT OS.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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A warning about sales by Compaq: more bad news rolls in from big technology
Article Abstract:
Compaq projected its 1st qtr 1998 sales to roughly match its $5.3 billion posted in the 1st qtr 1997. The announcement, which represents a 28% decline from the 4th qtr 1997, marks another spectacular stumble by a technology company. Analysts had expected the largest US vendor of PCs to earn $530 million, or 35 cents a share, in the 1st qtr 1998. Compaq blamed most of the drop on North American corporate sales, which constitute its largest market. Slower than expected sales followed a Feb 1998 price cut that had exceeded company expectations. Compaq has been lowering its prices more than the competition, according to the latest available data from Computer Intelligence. The $1,789 average sales price for a Compaq computer as of Jan 1998 amounted to a 16% fall from Jan 1997.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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