| T.R | Title | User | Personal
Name | Date | Lines |
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| 4564.1 | Q3 FY96 results | QUARK::LIONEL | Free advice is worth every cent | Tue Apr 23 1996 09:24 | 206 |
| Worldwide News LIVE WIRE
Digital reports Q3 net income of $124 ... Date: 23-Apr-1996
Page 1 of 4
Digital reports Q3 net income of $124 million;
Alpha systems revenue soars
Digital today reported net income of $124 million, or 74 cents
per common share, for the third quarter which ended March 30, 1996,
compared with net income of $74 million, or $.44 per common share,
for the same period last year.
Total operating revenues for the quarter were $3.62 billion,
up 4 percent from the $3.47 billion reported for the comparable
quarter a year ago. The company reported the highest total third
quarter revenue ever and the highest third quarter net income in
six years.
Net income for the first nine months of the 1996 fiscal year
improved to $321 million compared to a net loss of $38 million for
the same period last year.
"This performance is a clear reflection of Digital's progress
in its financial turnaround," said Digital Chairman Robert B.
Palmer. "We have produced six consecutive quarters of improving
profits on a year-over-year basis. The company is executing an
overall strategy that strengthens Digital's leadership in
client/server computing and positions it for improved financial
results.
"We are focusing on growing our businesses profitably and
clearly establishing leadership positions in key strategic areas,
including high-performance 64-bit computing, Windows NT for
enterprise solutions and Internet/Intranet connectivity," he said.
Product revenues were up 5 percent in the quarter to $2.056
billion from $1.961 billion in the third quarter of the previous year.
Service revenues were $1.565 billion, up 4 percent, compared with the
$1.506 billion reported in the same period last year.
Alpha product revenues grew by nearly 60 percent over the
prior year, driven by continued strong demand for AlphaServer systems.
A year ago, Digital unveiled its powerful AlphaServer 8000
family aimed at large commercial and scientific applications.
Building on that foundation, Digital last week announced its UNIX
TruCluster solutions, which shatter the barriers of performance,
availability and affordability for enterprise computing.
A TruCluster solution, consisting of four AlphaServer 8400
systems running Digital UNIX and Oracle Universal Server with Oracle
Parallel Server, runs 1.5 times faster at less than one-third the
price of the industry's previous performance leader and delivers
TPC-C performance of 30,390 transactions per minute.
"Digital remains the only major company today that offers a
true 64-bit solution -- from hardware, to operating systems, to
applications, to services -- designed to meet the most demanding
business requirements," Palmer said.
Recently, Digital, Microsoft Corp. and MCI Communications Corp.
announced an alliance to deliver integrated Intranet, electronic mail
and messaging and groupware business communications solutions. The
solutions will be powered by Digital's AlphaServer systems and will
use Digital's search and indexing technology and service capabilities.
"This alliance represents another significant, strong
endorsement of Digital's Alpha technology," Palmer said.
In total, revenue from the company's storage subsystems and
network products businesses grew more than 50 percent over last year.
The company continued to experience strong demand for products based on
its StorageWorks and enVisn network architecture, including significant
demand for switching and hub products.
Revenues from the personal computer business were lower than
expected during the third quarter, as previously announced.
"There were a number of factors contributing to this including
an industry slowdown in the commercial market sector, competitive
pricing pressures and higher levels of inventory in the distribution
channels. The company is taking steps to respond to this situation
and expects improved performance in the June quarter," said Vincent J.
Mullarkey, vice president and chief financial officer.
Gross margin for the quarter was 34.6 percent, compared with
32.2 percent for the comparable period a year ago.
Product gross margin was 37.1 percent, compared with 32.5
percent in the second quarter of fiscal 1996 and 28.7 percent in the
third quarter of 1995. Service gross margin was 31.3 percent compared
with 32.7 percent in the second quarter of fiscal 1996 and 36.7
percent in the comparable period last year.
Total operating expenses were $1.107 billion compared to $1.029
billion reported in the same period last year.
The company made good progress in improving cash generated from
operations. The third quarter reflected the highest level of cash
flow from operations in five years. Digital ended the quarter with
$1.738 billion in cash.
The corporation completed the quarter with approximately
60,900 employees -- a net reduction of 2,200 positions from a year ago.
Statements contained in this press release which are not
historical facts are forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995. All
forward-looking statements are subject to risks and uncertainties
which could cause actual results to differ from those projected. Such
risks and uncertainties are discussed more fully in the company's
latest quarterly report on Form 10-Q and the company's other filings
with the Securities and Exchange Commission.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands except per share data)
Three-Month Period Ended
March 30, 1996 April 1, 1995
Product sales.................. $ 2,055,710 $ 1,961,450
Service and other revenues..... 1,565,316 1,506,014
Total operating revenues....... 3,621,026 3,467,464
Cost of product sales.......... 1,294,032 1,399,155
Service expense and cost of
other revenues................ 1,074,650 953,317
Research and engineering
expenses...................... 275,703 251,167
Selling, general and
administrative expenses....... 831,792 777,664
Operating income............... 144,849 86,161
Net interest expense........... 7,139 7,277
Income before income taxes..... 137,710 78,884
Provision for income taxes..... 13,637 5,144
Net income..................... 124,073 73,740
Dividend on preferred stock.... 8,875 8,875
Net income applicable to
common stock.................. $ 115,198 $ 64,865
Net income applicable per
common share (1).............. $ 0.74 $ 0.44
Weighted average common
shares outstanding............ 156,594 147,961
Nine-Month Period Ended
March 30, 1996 April 1, 1995
Product sales.................. $ 6,221,248 $ 5,484,094
Service and other revenues..... 4,622,275 4,579,101
Total operating revenues....... 10,843,523 10,063,195
Cost of product sales.......... 4,133,992 3,930,101
Service expense and cost of
other revenues................ 3,115,310 2,927,025
Research and engineering
expenses...................... 795,483 787,051
Selling, general and
administrative expenses....... 2,415,681 2,483,188
Operating income/(loss)........ 383,057 (64,170)
Net interest expense........... 18,275 25,078
Income/(loss) before income
taxes and cumulative effect
of change in accounting
principle..................... 364,782 (89,248)
Provision for income taxes..... 43,756 13,203
Income/(loss) before
cumulative effect of change
in accounting principle....... 321,026 (102,451)
Benefit due to cumulative
effect of change in accounting
principle..................... - (64,503)
Net income/(loss).............. 321,026 (37,948)
Dividends on preferred stock... 26,625 26,625
Net income/(loss) applicable
to common stock............... $ 294,401 $ (64,573)
Per common share:
Income/(loss) applicable
before cumulative effect of
change in accounting principle $ 1.91 $ (0.90)
Benefit due to cumulative
effect of change in
accounting principle.......... - 0.45
per common share (1).......... $ 1.91 $ (0.45)
Weighted average common
shares outstanding............ 154,209 143,984
Note (1): Per common share amounts are calculated based on the
weighted average number of common shares and common share
equivalents outstanding during periods of net income, after
deducting applicable preferred stock dividends. Per share amounts
are calculated based only on the weighted average number of shares
outstanding during periods of net loss, after deducting applicable
preferred stock dividends.
SELECTED BALANCE SHEET DATA (Unaudited) - Q3 FY96
(in thousands except per share and employee data)
March 30, 1996
Cash and cash equivalents................ $ 1,737,981
Accounts receivable, net of allowances... 3,416,358
Inventories.............................. 2,140,790
Prepaid expenses, deferred income taxes
and other current assets................ 366,459
Total current assets..................... 7,661,588
Property, plant and equipment, net....... 2,205,585
Other assets............................. 440,198
Total assets............................. 10,307,371
Bank loans and current portion of
long-term debt.......................... 10,413
Accounts payable......................... 1,116,183
Accrued restructuring costs.............. 216,071
Total current liabilities................ 4,079,841
Long-term debt........................... 1,010,817
Postretirement and other postemployment
benefits................................ 1,244,192
Total liabilities........................ 6,340,170
Stockholders' equity..................... $ 3,967,201
Book value per common share.............. $ 23.20
Non-U.S. revenues.....................QTR $ 2,448,530
68%
YTD $ 7,100,753
65%
Employee population (approximately)..... 60,900
|
| 4564.2 | nice to see profits! | COPS02::JNOSTIN | | Tue Apr 23 1996 10:55 | 14 |
| It's nice to see that digital reported profits of $124M for Q3. Looks
like Bob Palmer is doing what he was hired for and is being paid to
do. He does deserve a lot of credit.
We all know that TFSO is a "way of life" and that fine tuning will
always be necessary. But it would be nice of TFSO would level off for
now at least.
We've heard that digital will cut it's employee population to 40,000.
Any fact or comments about this number?
Bottom line for now, congratulations to digital and the employees who
have made a difference.
|
| 4564.3 | | CHEFS::LUND_YATES | We are all mortal | Wed Apr 24 1996 09:36 | 9 |
| Agreed.
Nice to see, despite the previous message from the PC division, we were
able to make good numbers plus a good increase in the stock price.
Dave
BTW I've seen the phrase'TFSO' in several conferences and know it's to
do with lay-offs, but what does 'TFSO' actually mean?
|
| 4564.4 | | SPECXN::BARNES | | Wed Apr 24 1996 09:41 | 2 |
| TFSO...Thanks For Shoveing Off...used to not so bad when there was a
package....
|
| 4564.5 | | QUARK::LIONEL | Free advice is worth every cent | Wed Apr 24 1996 09:55 | 3 |
| Lots of notes with TFSO in the title, there's even a keyword.
Steve
|
| 4564.6 | Original definition of "TFSO" | CUSTOM::ALLBERY | Jim | Wed Apr 24 1996 10:22 | 6 |
| re: .3 - .5
But to answer the question, "TFSO" stands for "The Financial Support
Option." It was the name for the settlement package offered to
employees who experienced "involuntary separation" (Digital's euphamism
for layoffs).
|
| 4564.7 | Thanks For Shoving Off | ATLANT::SCHMIDT | See http://atlant2.zko.dec.com/ | Wed Apr 24 1996 11:05 | 8 |
| > But to answer the question, "TFSO" stands for "The Financial Support
> Option." ...
"Transition Financial Support Option"
You're not being laid off, you're merely "in transit" between jobs.
Atlant
|
| 4564.8 | it's a foxhole not a rathole | GRANPA::JKINNEY | | Wed Apr 24 1996 13:58 | 2 |
| To Few Soldiers Onboard.............From an MCS GRUNT'S point of view.
|
| 4564.9 | Ooooops | QUICKP::KEHOE | I can see | Thu Apr 25 1996 07:53 | 15 |
| re .8
I think one of your "o"s got TFSOOOOed. Didn't you mean,
"Too Few Soldiers Onboard?"
This reminds of a moving company logo I saw some years ago.
Emblazoned on their moving van was:
"Sonny's Moving and Storage -- No Job To Large, No Job To Small"
If Sonny wasn't going to pay the extra dollar to get a sign painter
who could spell, I wasn't going to let him move me!
Dan (one "a")
|
| 4564.10 | It's about the money! | MPOS02::BJAMES | I feel the need, the need for SPEED | Fri Apr 26 1996 13:02 | 6 |
| re .9
Perhaps he was paying by the letter for the signage on his trucks.
Probably was an economic decision.
Two letters * $x/letter * # of trucks = real money!
|
| 4564.11 | | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Fri Apr 26 1996 13:13 | 4 |
| re .10:
In the neighborhood where I grew up, there was a Wescot Theater on
Westcott Street. They saved the cost of two letters that way.
|
| 4564.12 | | DRDAN::KALIKOW | Lord help the Mr. without AltaVista! | Sat Apr 27 1996 17:56 | 9 |
| Oh, so NOW I know why we used the nodename ASABET:: when the real
river's name is the Assabet...?
No?
(nevermind)
:-)
|
| 4564.13 | | TRUCKS::PARMAR | I'm so fast - I'm even fast asleep | Mon Apr 29 1996 07:54 | 6 |
| > Oh, so NOW I know why we used the nodename ASABET:: when the real
> river's name is the Assabet...?
Maybe ASABET was used "AS A BET"!
Ravi :)
|
| 4564.14 | Q3 '97 results | bhajee.rto.dec.com::JAERVINEN | Ora, the Old Rural Amateur | Thu Apr 17 1997 07:29 | 232 |
| DIGITAL reports Q3 net income of $51 million
DIGITAL today reported net income of $51 million, or 27 cents per
common share, for the third quarter which ended March 29, 1997,
compared with net income of $124 million, or 74 cents per common share,
for the same period last year.
Total operating revenue for the quarter was $3.31 billion,
compared to $3.62 billion reported for the comparable quarter a year
ago.
"I am pleased we showed good earnings improvement over our second
quarter," said DIGITAL Chairman Robert B. Palmer. "Although revenue was
not where we wanted it to be, it was within our expectations with
progress in key strategic areas. I am particularly encouraged by the
growth in Windows NT-based solutions and Internet products and
services. I am confident that we will return to year-over-year revenue
growth over the next few quarters."
Progress made in strategic areas
Product revenue in the quarter was $1.84 billion compared to
$2.06 billion in the third quarter of the previous year. Service
revenue was $1.48 billion compared with $1.57 billion reported in the
same period last year.
Palmer said DIGITAL is making progress in a number of strategic
areas.
"Our Internet business, which includes servers, networking
products, software and services, achieved good growth during the
quarter with total revenue now more than $1 billion on an annual
basis," Palmer said. "We are achieving substantial success in sales to
Internet service providers where more than 200 ISPs in 37 countries
have turned to DIGITAL for Alpha and Intel servers, storage systems and
networking products."
Palmer said the company also is winning business with Microsoft
Exchange on Windows NT, capturing approximately 900,000 Exchange seats
worldwide since the beginning of the fiscal year. More than 50 percent
of the wins represent new business for DIGITAL, including installations
at British Petroleum and Lehman Brothers.
DIGITAL's network product business, Palmer said, introduced a new
family of high-performance switches that was well-received by the
marketplace and generated strong demand.
The company's Services Division, Palmer said, met both its
near-term objectives for revenue and gross margin. The division
announced a $70 million services contract with Canada's TransAlta
Corp. early in the quarter and recently won a $13.5 million contract
with Perkin Elmer, a leading manufacturer of life-science systems and
analytical instruments, to help design, manage and support a worldwide
SAP infrastructure.
New products rolled out in Q3
During the quarter, DIGITAL introduced a number of important new
products.
The company announced additions and enhancements to its 64-bit
DIGITAL AlphaServer and personal workstation product lines. The new
AlphaServer 800 and enhanced AlphaServer 1000A systems provide
high-availability, computer-clustering solutions for UNIX and Windows
NT and new Windows NT intranet search capabilities. The competitively
priced entry-level servers target the small business market.
Two new Windows NT personal workstations were announced based on
the Alpha microprocessor which deliver breakthrough Windows NT
workstation performance and the world's fastest Windows NT 3D graphics
solutions.
Additionally, the company unveiled three new models in its
value-priced HiNote VP 500 mobile client series which include models
with Windows NT Workstation 4.0 pre-loaded and pre-configured with
power management and plug-and-play features.
DIGITAL continued to strengthen Alpha's position as the
industry's leading high performance microprocessor. The company
unveiled the low cost Alpha 21164PC microprocessor, jointly designed
with Mitsubishi Electric, that delivers Alpha power at PC prices making
it very attractive to the volume Windows NT market.
In addition, DIGITAL announced a network appliance reference
design with Network Computer Inc., a subsidiary of Oracle Corp., based
on DIGITAL's low power/high performance StrongARM microprocessor. The
reference design is aimed at creating the industry standard for the
most powerful, low-cost network computing platform.
Early interest in this offering is very encouraging, with Funai
Electric Company and Aranex Inc. already committed to producing network
computing devices based on the design.
Additionally, DIGITAL announced a memo of understanding with
China Aerospace Corporation for a joint venture in the People's
Republic of China to explore development, manufacture and distribution
of network computers based on this reference design.
Expense control
Gross margin for the quarter was 33.4 percent, compared with 32.9
percent in the previous quarter and 34.6 percent for the comparable
period a year ago.
Product gross margin was 35.3 percent, compared with 37.1 percent
in the third quarter of 1996. Service gross margin was 31 percent
compared with 31.3 percent in the third quarter of fiscal 1996.
"Over the past three years we've succeeded in improving product
gross margin by 10 points while at the same time, stabilizing service
gross margin," said DIGITAL Chief Financial Officer Vincent J.
Mullarkey.
Total operating expenses were $1.06 billion compared to $1.13
billion reported in the same period last year.
"Overall operating expenses for the quarter reflected good
management control and the impact of restructuring, resulting in a 7
percent reduction in operating expenses from the same period last
year," Mullarkey said.
"Our third quarter profits improved considerably over the second
quarter, despite the significant negative impact of the strengthening
U.S. dollar," Mullarkey continued. "Management actions were taken
across the company during the quarter to partly mitigate the currency
impact."
The company ended the quarter with $2.48 billion in cash and
short term investments, up approximately $200 million from the second
quarter.
"The company's balance sheet continues to strengthen in all
areas," Mullarkey said. "Improvements in inventory and accounts
receivable contributed to the fifth consecutive quarter of positive
cash flow from operations. During the quarter, the company repurchased
4.5 million shares of common stock at a cost of approximately $160
million. The company's cash and short term investments position has
improved more than $700 million from a year ago."
The corporation completed the quarter with approximately 55,100
employees -- a net reduction of 5,800 positions from a year ago.
Statements contained in this press release which are not historic
facts are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. All forward-looking
statements are subject to risks and uncertainties which could cause
actual results to differ from those projected. Such risks and
uncertainties are discussed more fully in the company's latest
quarterly report on Form 10-Q and the company's other filings with the
Securities and Exchange Commission.
Consolidated Statements of Operations (Unaudited)
(in thousands except per share data)
Three-month Period Ended
March 29, 1997 March 30, 1996
Product sales...................$ 1,836,516 $ 2,055,710
Service revenues................. 1,477,794 1,565,316
Total operating revenues......... 3,314,310 3,621,026
Cost of product sales............ 1,188,578 1,294,032
Service expense.................. 1,019,290 1,074,650
Research and engineering
expenses........................ 256,476 275,703
Selling, general and
administrative expenses......... 798,714 858,203
Operating income................. 51,252 118,438
Other (income)/expense, net (1).. (10,848) (19,272)
Income before income taxes....... 62,100 137,710
Provision for income taxes....... 11,134 13,637
Net income....................... 50,966 124,073
Dividend on preferred stock...... 8,875 8,875
Net income applicable
to common stock................$ 42,091 $ 115,198
Net income applicable
per common share (2)...........$ 0.27 $ 0.74
Weighted average common
shares outstanding.............. 155,666 156,594
Nine-Month Period Ended
March 29, 1997 March 30, 1996
Product sales...................$ 5,202,959 $ 6,221,248
Service revenues................. 4,380,739 4,622,275
Total operating revenues......... 9,583,698 10,843,523
Cost of product sales............ 3,445,203 4,133,992
Service expense.................. 3,016,261 3,115,310
Research and engineering expenses 763,961 795,483
Selling, general and
administrative expenses......... 2,348,297 2,464,372
Operating income................. 9,976 334,366
Other (income)/expense, net (1).. (27,465) (30,416)
Income before income taxes....... 37,441 364,782
Provision for income taxes....... 20,475 43,756
Net income....................... 16,966 321,026
Dividends on preferred stock..... 26,625 26,625
Net income/(loss) applicable
to common stock................$ (9,659) $ 294,401
Net income/(loss) applicable
per common share (2)...........$ (0.06) $ 1.91
Weighted average common
shares outstanding.............. 154,965 154,209
Note (1): In the third quarter of fiscal 1997, Other (income)/expense,
net includes approximately $30 million of interest income, $21 million
in interest expense and $2 million in net gain on divestments. In the
third quarter of fiscal 1996, Other (income)/expense, net includes
approximately $19 million in interest income, $26 million in interest
expense and there were $26 million in net gains on divestments. In the
first nine months of fiscal 1997, Other (income)/expense, net includes
approximately $82 million in interest income, $64 million in interest
expense and $9 million in net gains on divestments. In the first nine
months of fiscal 1996 Other (income)/expense, net includes
approximately $57 million in interest income and $75 million in
interest expense and $48 million in net gains on divestments.
Note (2): Per common share amounts are calculated based on the
weighted average number of common shares and common share equivalents
outstanding during periods of net income, after deducting applicable
preferred stock dividends. Per share amounts are calculated based only
on the weighted average number of shares outstanding during periods of
net loss, after deducting applicable preferred stock dividends.
Selected Balance Sheet Data (Unaudited) - Q3 FY97
(in thousands except per share and employee data)
March 29, 1997
Cash, cash equivalents and short-term investments.......$ 2,481,708
Accounts receivable, net of allowances................... 2,886,164
Inventories.............................................. 1,471,390
Prepaid expenses, deferred income taxes and other
current assets.......................................... 324,510
Total current assets..................................... 7,163,772
Property, plant and equipment, net....................... 2,114,074
Other assets............................................. 334,667
Total assets............................................. 9,612,513
Bank loans and current portion of long-term debt (3)..... 264,043
Accounts payable......................................... 810,056
Accrued restructuring costs.............................. 443,230
Total current liabilities................................ 4,187,413
Long-term debt (3)....................................... 749,320
Postretirement and other postemployment benefits......... 1,179,420
Total liabilities........................................ 6,116,153
Stockholders' equity....................................$ 3,496,360
Book value per common share.............................$ 20.26
Non-U.S. revenues...................................QTR $ 2,274,037
69%
YTD $ 6,473,907
68%
Employee population (approximately)..................... 55,100
Note (3): In the second quarter of fiscal 1997, $250 million was
reclassed from long-term debt to current portion of long term debt to
recognize that the five-year bond is due in November of 1997.
|
| 4564.15 | | UCXAXP.UCX.LKG.DEC.COM::GRADY | Squash that bug! (tm) | Thu Apr 17 1997 08:07 | 5 |
| Interesting. Revenue is down nearly 10% but we still managed to make a
profit - most if not all of which probably came from VMS, which was not
mentioned once.
|
| 4564.16 | | HERON::BARKER | Careful with that AXP Eugene | Thu Apr 17 1997 08:28 | 10 |
| re .15
> Interesting. Revenue is down nearly 10% but we still managed to make a
> profit - most if not all of which probably came from VMS, which was not
> mentioned once.
You are not kidding! If we had only made $51M profit from OpenVMS the company
would be in a desparate state.
Nigel
|
| 4564.17 | We're a hardware company... | BASEX::EISENBRAUN | John Eisenbraun | Thu Apr 17 1997 09:01 | 5 |
| > ...probably came from VMS, which was not
> mentioned once.
Software in general was not mentioned once. All the new product
offerings were hardware...
|
| 4564.18 | | NUBOAT::HEBERT | Captain Bligh | Thu Apr 17 1997 09:18 | 4 |
| I'd be willing to bet a modest lunch that the bulk of the profit came
from VMS and VMS layered software products.
Art
|
| 4564.19 | STorage rules! | KAPTIN::BLEI | Larry Bleiweiss 237-6080 SHR3-2/X17 | Thu Apr 17 1997 09:54 | 9 |
| > <<< Note 4564.18 by NUBOAT::HEBERT "Captain Bligh" >>>
>
>I'd be willing to bet a modest lunch that the bulk of the profit came
>from VMS and VMS layered software products.
>
>Art
***
The other Kaptin::Blei would like to remind you that Storage once again
made it's numbers and might just be the bulk of the profit.
|
| 4564.20 | | NUBOAT::HEBERT | Captain Bligh | Thu Apr 17 1997 10:13 | 7 |
| We may never know. It might not be corporately expedient to have us know.
But isn't it nice, arguing over where the profit came from? Instead of
arguing over who caused the loss?
*Two* Captain Blighs? Mein Gott.
Art
|
| 4564.21 | | axel.zko.dec.com::FOLEY | http://axel.zko.dec.com | Thu Apr 17 1997 10:33 | 8 |
|
At least the stock is up...
mike
dreaming of $50/share
so I can pay off some
bills...
|
| 4564.22 | time to take over the ship | MKTCRV::MANNERINGS | | Thu Apr 17 1997 10:42 | 7 |
| Never mind Captain Bligh, Fletcher Christian got it right, and we are
trying to sail round the world again.
q3 is basically a repeat of q2, negative growth, low profit, loss of
market share, bad news. Let's hope Bruce Clafin can turn it round.
..Kevin..
|
| 4564.23 | VMS - thank you, but let's focus on growth markets | ROMOIS::ABRAMOVICI | Are you Micro-soft ? | Thu Apr 17 1997 12:09 | 11 |
|
Re : VMS made the profit
I don't understand why one should name VMS just because its our cash
cow. OK, so VMS is allowing us to make a profit, but others are the
growth sectors (sorry, I mean the sectors we would like to grow in),
and personally I find it's only right to pinpoint these potentially
high-growth markets more than the non-growing but cash-raising VMS.
Jut my 2 cents,
Michel.
|
| 4564.24 | | QUARK::LIONEL | Free advice is worth every cent | Thu Apr 17 1997 13:18 | 7 |
| I was a bit disappointed, but not at all astonished, to not have DIGITAL
Visual Fortran mentioned as a new product in this quarter. It's a major new
direction for Digital and is getting us a lot of notice in parts of the
computing world where we were formerly invisible. But, I forget - it's
software, and therefore doesn't count.
Steve
|
| 4564.25 | | UCXAXP.UCX.LKG.DEC.COM::GRADY | Squash that bug! (tm) | Thu Apr 17 1997 14:31 | 12 |
| Ok, my apologies for the off-the-cuff remark, but it is
a financial statement, and it does mention Unix and NT,
while VMS is overlooked, despite its being the only one
of the three that makes money - I mean, that is what the
article is about, how much money we made...
I realize we're a hardware company, but it's VMS that
runs on most of that hardware, still.
It just seemed incongruous.
tim
|
| 4564.26 | | bhajee.rto.dec.com::JAERVINEN | Ora, the Old Rural Amateur | Fri Apr 18 1997 06:21 | 5 |
| "Sales of Digital's flagship Alpha unit suffered during the quarter,
with revenues falling 9 percent from a year ago. In particular, Alpha
sales into the Unix market suffered considerably."
From http://www.pcweek.com/news/0414/17mdec.html
|
| 4564.27 | Profit... Loss? | RICKS::PHIPPS | DTN 225.4959 | Fri Apr 18 1997 08:29 | 6 |
| This morning it was being reported as a loss on First Business or one of
those on TV.
I prefer the profit memo.
mikeP
|
| 4564.28 | WSJ | LEXSS1::PUCHRIK | Cooler Master | Fri Apr 18 1997 09:33 | 9 |
| "Digital Profit Skids in Fiscal 3rd Period as Alpha Sales Fall" was how
the Wall Street Journal put it. Alpha system sales fell 13% in the
fiscal 3rd quarter, marking the first time sales have declined since
Digital began marketing computers based on the proprietary chip four
years ago. Sales of Alpha products that run Unix fell about 6% at a
time when analysts say Unix system sales industry-wide grew about 20%.
Sales of Alpha systems running Windows NT were up 40%.
Well the stock did jump 1 and 1/2 to a sizzling 27 and 1/2.
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| 4564.29 | Wonder how well the clone makers did? | WRKSYS::BROWER | Pokey Smurf | Fri Apr 18 1997 11:03 | 4 |
| Wonder if there's any info on how well the Alpha clone makers are
doing?
bob
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| 4564.30 | | LABC::RU | | Fri Apr 18 1997 11:30 | 3 |
|
USA today says Digital reported 3rd quarter disappointing revenue
lead to 59% drop in earning.
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| 4564.31 | | QUARK::LIONEL | Free advice is worth every cent | Fri Apr 18 1997 12:46 | 5 |
| Re: .29
Clone makers? Surely you're mistaken - Alpha is a "proprietary chip"!
Steve
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| 4564.32 | Proprietary...but anyone can build an Alpha system | CHIPS::LEIBRANDT | | Fri Apr 18 1997 13:16 | 4 |
|
I would be curious to hear how Enorex and the other companies selling
Alpha boxes are doing too...
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| 4564.33 | .27 exceeded estimate of .25 | STAR::jacobi.zko.dec.com::jacobi | Paul A. Jacobi - OpenVMS Systems Group | Fri Apr 18 1997 13:48 | 8 |
| >>> Well the stock did jump 1 and 1/2 to a sizzling 27 and 1/2.
The stock price blip is most likely because 27 cents per shares exceeded
projected earning of 25 cents per share.
-Paul
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| 4564.34 | | YIELD::HARRIS | | Fri Apr 18 1997 14:25 | 25 |
| re: .31
Steve,
You are going to have to sell quite a few copies of Visual Fortran to
match the revenue Digital gets from selling Alpha chips to:
Aspen
Carrera
Cray Research
Deskstation
Enorex
Microway
NCP
Panda
Polywell
Raytheon
Tadpole
Vobis
This is not a complete list, just some of the ones I can think of.
-Bruce
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| 4564.35 | | QUARK::LIONEL | Free advice is worth every cent | Fri Apr 18 1997 14:35 | 4 |
| Don't be so sure.... we expect to sell an awful lot of DVF kits - like
many thousand per year. How many Alpha chips do we sell per year?
Steve
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| 4564.36 | DVF? | 37030::FPRUSS | Frank Pruss, 202-232-7347 | Fri Apr 18 1997 16:27 | 1 |
| Is DVF for both Intel and Alpha?
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| 4564.37 | | LABC::RU | | Fri Apr 18 1997 16:46 | 3 |
|
Does DVF have anything to do with Microsoft's Visual
product?
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| 4564.38 | | CGOOA::OWONG | SKIWI in Canada (VAO) | Fri Apr 18 1997 18:14 | 7 |
| Digital Visual Fortran for Windows 95 and Windows NT is the replacement
product for Microsoft Fortran Powerstation.
see www.microsoft.com/fortran and www.digital.com/fortran for lots more
detail.
Owen.
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| 4564.39 | | QUARK::LIONEL | Free advice is worth every cent | Fri Apr 18 1997 21:25 | 3 |
| And feel free to ask DVF questions in TURRIS::FORTRAN.
Steve
|