With first loss, Dell shifts gears on pursuing growth

Article Abstract:

Dell Computer Corp reports a 2nd qtr 1993 loss of $75.7 million, despite a 53 percent increase to $703 million in revenues. Dell's first quarterly loss since going public in 1988 resulted in part from increased price competition from such revived microcomputer vendors as IBM and Compaq, which forced the company to sell old inventory at steep discounts. The loss also includes a $71 million charge against earnings to cover restructuring European operations, depreciating old inventory and cancelling a new notebook-computer line. Founder and Chmn Michael S. Dell says that Dell now plans to put profitability and financial liquidity ahead of the unrestrained growth it has pursued since 1991 and will revise its product-development, procurement and sales-force-incentive strategies accordingly. Dell introduced new microcomputer models targeted at specific market segments earlier in Jul. Its stock was up $1.25 to $20.875 in Nasdaq trading on Aug 17.

Finance, Dell Inc., DELL, Revenue, Strategic Planning, Stock, Financial Report, Losses, Second Quarter

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I.B.M. official, passed over, to leave

Article Abstract:

Robert Ripp, IBM's treasurer, announces that he is leaving the company in Oct 1993 after 29 years. Ripp, 51, was regarded a leading candidate for the chief financial officer post but IBM's new leadership chose an outsider, Jerome B. York of Chrysler Corp, instead. Ripp says that he plans to join an 'entrepreneurial start-up' but refuses to give specifics. He was IBM's top financial officer for its personal computer business that started in 1981. The business hired young designers and managers and was intentionally placed in Boca Raton, FL, away from the Armonk, NY, corporate headquarters. Ripp was part of the group that was known in the industry as 'wild ducks' because they did not fly in formation.

Prepackaged software, Officials and employees, International Business Machines Corp., Appointments, resignations and dismissals, Executive, Resignation, Ripp, Robert

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