Light at the end of Digital's tunnel: optimism over new, aggressively priced computers

Article Abstract:

DEC's announcement of its new VAX 4000 and VAX 6000 minicomputers is considered a possible turning point for the $14 billion company, which has been experiencing financial troubles since 1989. The new computers perform three times as fast as existing models, is aggressively priced and will act as bridge to DEC's reduced-instruction-set computer (RISC)-based machines, code-named Alpha, to be introduced in late 1992. To offset its plummeting hardware sales and stagnant income, DEC management has laid off 11,300 employees out of 126,000 since late 1989. A companywide reorganization has led to the resignation of five vice presidents within a year. Analysts have become optimistic, however, as quarterly earnings announced in Oct 1991 grew to 23 cents a share, compared to 21 cents a share in 1990. With more than $2 billion in cash and little debt, DEC still has one of the strongest balance sheet in the industry.

Marketing, Management, Minicomputers, Forecasting, Financial Analysis Software, Minicomputer, DEC VAX 4000 (Minicomputer), DEC VAX 6000 (Minicomputer)

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Digital posts huge deficit; Intel net off

Article Abstract:

DEC reports a $294 million loss for its 3rd qtr FY 1992, ended Mar 28. DEC announced a $117 million profit for the comparable quarter in 1991, and blames its current results on global economic recession. DEC's stock dropped to $48.25 on the New York Stock Exchange on April 9, 1992, as a result of its financial report. The company will likely respond to its financial malaise with an additional charge against earnings and further layoffs. The poor results reflect the second consecutive quarterly loss for DEC, which lost $135 million in 2nd qtr FY 1992. Intel Corp reports earnings of $184.1 million and sales of $1.24 billion for its 1st qtr FY 1992. The results indicate a 7 percent decrease in earnings and a 9 percent increase in sales from the comparable quarter in 1991. Intel took a $35 million charge and a $15 million charge in the most recent quarter.

Semiconductors and related devices, Prepackaged software, Computer peripheral equipment, not elsewhere classified, Intel Corp., INTC, Third Quarter, Financial Report, Losses, First Quarter

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