Tech Stocks fall after gloomy reports; share are hammered hard as Cabletron, Seagate add to investor worries
Article Abstract:
Both Seagate Technology and Cabletron Systems have reported poor results for their current fiscal quarters, causing technology stocks to falter and investors to become more concerned over the decreasing demand for computer products. Cabletron's stock fell 34% from $45.75 to $30.25 when the company announced that its fiscal first qtr would be below analysts expectations. The company attributed the slow quarter to poor revenues from Europe, a tough business climate and production delays. Seagate's stock dropped almost 10% when it announced sales of its disk-storage products had been weak. HP and Intel have also reported unexpectedly soft sales. Consequently, the Nasdaq Stock Market has gone into a sharp decline. Several industry analysts and manufacturers, however, do not believe these four companies represent the overall industry, and maintain that the overall PC industry is not showing broad signs of slowing.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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PCs sold briskly despite signs of a slowdown
Article Abstract:
Consumer PC sales were strong during the 1995 holiday season, relieving fears that a two-year long acceleration in the PC market could be dwindling. Market research found that 47% of retailers enjoyed sales that exceeded their expectations, while 36% found sales in line with anticipated levels. Contributing to the fears of a slow down were a loan that Packard-Bell was allegedly forced to take from Intel and a disclosure by Apple Computer that its sales would fall short of projections. However, all Packard-Bell computers except the underpowered 75MHz Pentium sold well, and Apple appears to have fared better than its pessimistic predictions. Some retailers were hurt during the holiday season, however, because dire market predictions led them to offer financing plans and discount heavily in hopes of avoiding an inventory glut.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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NCR sells technology to South Korea; risky strategy may strengthen rivals
Article Abstract:
NCR agrees to license its massively parallel technology to the South Korean government as well as Hyundai Electronics Industries and Samsung Electronics Company, two of that country's largest computer manufacturers. The agreement bars the companies from selling the units they create with NCR's technology within Western Europe, Australia, Japan and the US, but the companies can freely target Asia and Eastern Europe. NCR will receive a royalty from each unit that is sold, but some analysts question the wisdom of an agreement that will bolster the positions of two significant NCR competitors. NCR officials suggest that the cost of establishing adequate support and sales systems in these diverse markets is prohibitively high and that the company will ultimately benefit from the agreement.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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