Zenith Data and Packard Bell in deal for new PC's

Article Abstract:

Zenith Data Systems Corp and Packard Bell Electronics Inc sign a deal that will allow them to jointly manufacture desktop and notebook computers. Under the terms of the agreement, Zenith Data will manufacture new notebook models that will be marketed under the Packard Bell brand through retailers. Groupe Bull SA, Zenith Data's parent company, is also acquiring a 19.9 percent share of Packard Bell. Packard Bell is the fourth largest microcomputer seller, with a 37 percent share of the discount market in 1992. Company officials say 1993 sales should reach $1.3 billion, from $938 million in 1992. Packard Bell, however, has been suffering from a lack of cash to finance its growth. The company also missed out on the phenomenal growth of the notebook computer market; only 5 percent of its sales come from notebook computers, as against the industry average of 20 percent.

Computer industry, Microcomputers, Contracts, Laptop computers, Notebook computers, Microcomputer, Cooperative Agreements, Zenith Data Systems Corp., Packard Bell NEC Inc., Notebook Computer

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Dell stock plunges after forecast

Article Abstract:

Dell Computer Corp's stock fell $6.125 to $30.125 on Feb 24, 1993, as an earning projection suggested Dell's profit goal had been dropped below five percent. Dell CFO Tom Meredith projected that sales would rise over 70 percent from $3.4 billion to $3.7 billion, and that earnings per share would be $3.30 to $3.75. Due to the drop in Dell's share price and the current interest rates, Meredith also announced that Dell would withdraw plans to sell four million more shares, and would borrow instead. This follows earlier delays in Dell's planned $150 million share release due to the SEC investigation of the company's currency accounting. The reduction in profit margins is due to an aggressive computer pricing war being waged by Dell and Compaq that is squeezing out the smaller players.

Computer software industry, Software industry, Finance, Profits, Dell Inc., DELL, Sales, Price cutting, Profit, Stock, Financial Report

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