Digital has first loss in a quarter; $400 million charge taken by company

Article Abstract:

DEC has announced the first quarterly loss in the company's 25 year existence. The company has been hit hard by the general slowdown in the computer industry. Income for FY 1990 was $74.4 million, down from $1.07 billion in 1989. Earnings per share were down to $.59 from $8.45. A $400 million charge will cover closing operations, retraining staff and reducing the number of jobs by 5,000 to 6,000. The company hopes to avoid further charges in the 1st qtr of 1991, but executives caution that the year is likely to get off to a slow start. A revamp of the company's product line includes the DEC VAX 9000, the company's first mainframe computer. Industry observers maintain that layoffs are likely unless the 9000 performs better in the market than expected.

Finance, Profits, Growth (Physiology), Growth, Computer Industry, Profit, Financial Report, Losses, First Quarter

---

I.B.M. speeds up sales plan for 5 mid-range mainframes

Article Abstract:

IBM plans to release five midrange mainframe computers between Feb and Mar 1992, which is four months earlier than anticipated. IBM says the change is due to improvements in its production operations and is not caused by any decrease in demand. The new machines are based on the same design as IBM's most powerful mainframes, the IBM ES/9000 820 and 900, except the midrange computers have lesser processing capabilities. Although IBM's revenues have remained steady between 1990 and 1991, margins have dropped eight to 12 percent as a result of price slashing. Analysts believe there is more competition in the mainframe market, which was once an IBM-dominated arena. Analysts say that IBM hopes for a better mainframe market in the second half of 1992.

Office machines, not elsewhere classified, Product Introduction, Industry Analysis, Outlook

---

I.B.M.'s stronghold under siege

Article Abstract:

IBM's dominant role in the mainframe computer industry is being threatened with the trend towards microcomputers tied together in a network, with the mainframe serving only as a kind of electronic librarian that provides material to the connected system. IBM's competition is being cautious about being matched with its strong competitor, not wanting provoke the giant corporation to turn against them, but both Digital Equipment Corp and Tandem Computers are planning to introduce mainframe computers. Tandem Computers Inc will compete directly with IBM with Tandem's Cyclone, a machine that, according to experts, outperforms IBM in increasingly vital kinds of computing.

Product development, IBM, Tandem Computers Inc., Networks, Microcomputer, TDM

Similar abstracts:

• Abstracts: Man denies digital piracy in first case under '98 act. Bankruptcy auction begins for speech technology company
• Abstracts: Death in the afternoon. Jihad in Papua. Death in Papua
• Abstracts: Hewlett net surpasses forecasts; stock rises on posting of $260 million profit. Hewlett-Packard profit down by 2.6% in quarter
• Abstracts: New products due from Sun and Apple; it's a busy week for the computer industry. A machine to control PC network
• Abstracts: A hard road for software merger: enemies are united at Dun & Bradstreet. Software is the next target

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.