Conference 7.286::digital

    This is not the place for guessing games ----
    
    	IF you know something, you should not state it here!
    
    	IF you do not know anything, then it is just a game! SCRABBLE is
    	better!
    
    Wait for the official figures.  If you want to speculate do it at home.
    
    Moderator, I suggest that this topic should be deleted.
    
    Shalom
    Baruch

    
      Gee, I don't get .1 - of course, it is just a game, since
     the bean counters can make it anything they want by taking
     things in different quarters.  But my SCRABBLE games always
     turn into arguments about which dictionary to use.  Now if
     you had said TETRIS...
    
      My guess is -120M$ (and I know nothing).
    

    .2 which dictionary do you support.  we always argue about it, too.
    I hate the scrabble dictionary with it's two letter foreign words.
    
    I have no idea about the results and don't see the point in 
    speculation without basis.  It seems that as previously stated in
    .1, if we knew we wouldn't write it here and if we don't know why
    guess.

    I'll guess:
    
    Europe and GIA show modest profit with Europe the better, the US
    shows a greater than $150million loss.
    
    Laurie.

    
     To .2 - currently I insist on Webster's New World Dictionary of the
    American Language ("center", not "centre" like in the UK).  Agree
    that Scrabble-based dictionaries degrade the game.
    
     Why guess ?  No very good reason (I think a more interesting
    number to guess is headcount, which will be announced also.  Maybe
    101,000 ?), but I think it's like when your dog does his business
    on the rug - rub his nose in it.  Everybody in the company
    should be constantly reminded we are losing other people's
    money, and we should try to stop it !
    
    

    I'll guess also.  Heck, you others are either a stick in the mud or a
    typical DEC cost center manager -- just can't forecast anything, has
    plenty excuses as to why not and is just plain chicken crap.
    
    My guess, 280M loss.  The economy is still not moving, our sales are
    not up yet (from what you hear), alpha is late due to late software, 
    layoffs only helped with 2 weeks of expenses, our "best" sales/services
    people were on a beach in Hawaii for a week (revenue down, expenses
    up), we just received part of the new game plan (which is OK, I'm glad
    they are taking the time to put together a game plan -- I only hope 
    that it is a great strategy!), etc.
    
    I'll even take a guess for Q3 and Q4.  Smaller loss for Q3 (125M) and
    a 25M profit for Q4 (But we all have to put our efforts with Palmer
    to make his Q4 profit plan work).

>    
>    I'll even take a guess for Q3 and Q4.  Smaller loss for Q3 (125M) and
>    a 25M profit for Q4 (But we all have to put our efforts with Palmer
>    to make his Q4 profit plan work).

	Whew ! Talk about optimism !

	Last count was a loss of ~ $ 3 million  / day.

	Each of the past quarters' reports has shown increases
	in GS&A expenses ( General, Selling and Admin ), despite
	"cutbacks", "travel curtailment" and TFSOs.

	I'd say $ 200+ million loss this quarter, and $ 150 million
	for the next.

	This game is 'bout over, folks.

	Steve H

    
    We'll be seeing nothing but red until someone recognizes and
    eliminates the black hole in this company's balance sheet.

    Q4 this year is a 14 week quarter.  That gives us another week to sell
    stuff.  Additional TFSO's should reduce expenses, and we will hopefully
    be selling quite a bit of Alpha hardware and systems integration
    business by then (a lot of customers are "looking at" Alpha right now,
    and we are putting a lot of SI business on the table).
    
    I believe the company will put an all out effort to make Q4 "black". 
    If we are not black in Q4, I think things will become very difficult,
    much more so than we have experienced to date.
    
    While I'm here, I would like to make one more comment.  In this notes
    file, much discussion about benefit reduction, TFSO, management
    ineffectiveness, etc. takes place, and that is healthy and good. 
    However, the tone of much of this discussion is that of individual
    contributors being victims, getting screwed by "the company", etc.  For
    those people, please understand, Digital is in BIG TROUBLE.  For lack
    of a better word, a WAR is being waged right now to save the company
    that all of us have worked so hard to build.  I try to keep that
    perspective as changes occur, and I hope that others are doing the
    same.
    
    Best regards,
    
    Liam Spaeth

>	For those people, please understand, Digital is in BIG TROUBLE.

	I believe the readers and contributors to this discussion realize 
	that. In fact, many contributors to this discussion (some of whom
	are no longer here) tried long ago to warn of the coming BIG TROUBLE
	before it became a reality.

	I think that most people would understand and accept even those
	actions that affected us adversely, if 

	      o they were accompanied by clear and straightforward 
		explanations, rather than the silence, or at best, 
		managementspeak we've been getting

	      o we saw that those responsible for bringing the company to 
		the current condition took a leadership role in bearing the 
		burdens

	      o a consistent and clear plan was articulated for returning 
		the company to not only profitability, but to a position 
		of leadership.

					Tom_K

    RE .11
    
    Dick Lennard for one. I really miss his contributions to this file.
    He had most of what has happened pegged a few years ago. Some didn't
    like to here it, too bad, if people has listened earlier perhaps
    things may be different today. 
    
    Jim C.
    
    

    IMHO, Tom stated it very well in .11.  I am not one of those who think,
    talk, or act as if I've been "screwed" by the company, but so far I am
    disappointed. I still expect the Digital leadership to deliver what Tom
    has asked for in .11.  If they don't, the corporation has been screwed
    and we all going down with the 'sinking ship', including the customers
    and stockholders.

    Tom, you make good points.  I'm not as sure as you, however, that all
    readers and contributors correctly perceive how serious our situation
    is.
    
    Unfortunately, many in the company no longer trust management to do the
    right things to restore the company to profitability.  I for one,
    however, feel that Mr. Palmer has a clear plan and is beginning to
    implement that plan.  Many persons who had been in positions of great
    responsibility are gone now; that tells me that the wheels of
    accountability are slowly turning in the right direction.  And yes,
    many parts of the company are re-organizing again, but from my
    perspective these changes are positive (finally) and not entirely
    politically motivated, as unfortunately seemed to be happening in the
    past.
    
    I have mixed feelings about the lack of explanations being given to
    employees who are affected by policy changes.  In a war, the sergeant
    does not patiently explain to the soldiers why it is important to
    capture a hill or destroy an enemy encampment; orders are given and
    executed without question.  This is the fastest and most expedient way
    to accomplish a task or achieve a goal.  If the soldiers don't trust
    the sergeant to make the right decision, however....
    
    Liam Spaeth

  >>  Many persons who had been in positions of great responsibility are gone
  >>  now; that tells me that the wheels of accountability are slowly turning
  >>  in the right direction.
    
    Many of us recognize this and this is a source of optimism.  Palmer
    himself has said, repeatedly, that Digital's problems will take time to
    solve.  Time, however, is not on our side. Therefore the optimism must
    be tempered.
    
    Larry
    
    

Re: .-1

> Palmer himself has said, repeatedly, that Digital's problems will take time 
> to solve.  

That's to the outside world. Inside, he's a very different, very demanding
animal (which is great!). I know he gave the European Management Team some
pretty stringent revenue increase/ expense decrease goals along with a threat
that if the team didn't pull the results in, that he'd pick a team that did.

								- Ian W.

    The real question, as I see it, is not whether the next quarter will be
    profitable, but whether Digital will be able to shed its huge overhead
    costs quickly enough to survive.  I seen some encouraging moves to
    reduce headcount, but we still seem to be nibbling.  While we nibble at
    this big piece of cheese, the cat is sneaking up behind us.
    
    I have worked for other companies that went under because they did not
    react quickly, i.e., take SEVERE action, to reduce their overhead
    structure when fundamental changes in the market occurred. 
    
    The one encouraging thing I have seen lately is the "resignation" of
    1/2 dozen V.P.'s.  I figure each V.P. that leaves has the same
    financial impact as three or four of us regular people leaving.  Until
    recently, the cuts in management seemed practically non-existent.

    
      Read in the Globe today an industry analyst is predicting -200M$
    and headcount 100,000.
    
      The real data is a week from tomorrow.  What is the prize for the
    closest guess ?
    

    >The real data is a week from tomorrow.  What is the prize for the
    >    closest guess ?
    
    I give up.  What?  Maybe a bus token and a free burger?
    
    Steve

    A good price, maybe for all of us to keep our jobs in order to be able
    to maintain our families in a decent way !
    
    However, if we show - $ 200M (in the red) that is not good enough and
    we can expect another blood bath.
    
    My only hope: That Mr. Palmer read the custer letter that was
    circulated around the company several weeks ago and he PAY ATTENTION !
    
    This next one to be the last one !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    
    

    This won't have any affect on Q2, but out here in Colorado, we just
    heard that there was an accident at the new Hudson construction 
    site...a floor or wall collapsed, lots of people hurt.
    
    Has anybody got any news on this?  Will this affect Digital, or does
    the construction company/insurance company pay for this?
    
    Thanks,
    
    

    
    Re .21:  see note 2313
    

    What is the Custer letter???  I haven't seen it yet.  Would someone
    post it here or send me a copy at:    GRANMA::SHORN
    
    Cheers,
    Scott

    RE: .23
    
    >What is the Custer letter???  I haven't seen it yet.  Would someone
    >post it here or send me a copy at:    GRANMA::SHORN
    
    "Benteen,
    
    Big Camp.  Come quick.  Bring packs.
    
                             Custer"
    
    

    
    Re: the "Custer" letter
    
    I believe they are referring to the Note 2292 "A customer's
    perspective."  

    For all those interested and that have sent messages to me requesting
    the now famous customer letter is in note 2292.   Please read it 
    carefully and see if the message that you have read is the one
    that I read.
    
    
    DEC...shape up or ship out !!!!!!
    
    							

    
      Well, the results are in, -73M$.  The original noter wins, and all of
    the rest of us were too pessimistic, some of us grossly so !  We should
    do this again in late March, those that are left, that is.
    

    Thanks Braucher for your note.   Now I agree with you that we should do
    this for March, however, there is a little twist.   When I originally
    put the note in, I was looking for a reaction, which I optained and you
    have pinpointed (pessimism !).   Now, due to the fact of our 'better
    than expected' results, we have created an expectation for Qtr. 3 and
    4.    So, it was a game in Qtr. 2, it is a MUST in Qtr. 3 we HAVE TO
    show between $ 0.00 to $ 10.0M red to:1) maintain our trend, 2) 
    sustain our credibility 3) get our goal of a black Qtr. 4.
    As the Disney song goes.....I'm wishing......I'm wishing !!!!!