Data General Corp (DG) credits strong sales of its Aviion workstations for its second straight profitable quarter following five years of losses. The company's Eclipse MV line of minicomputers has ...experienced steady sales, although DG recognizes a drop in demand for proprietary minicomputers and is focusing on its Aviion open systems-based workstations and servers. DG reports 2nd qtr earnings of $19.2 million, compared with an $8.6 million net loss for the same quarter in 1990. Record sales of Aviion products for the recent quarter were up to $50 million.
Local-area network manufacturers Novell Inc and Banyan Systems Inc reported big increases in both earnings and revenues for recent quarters. Novell doubled its earnings to $30.4 million with revenue ...of $134.6 million in its first quarter. The results reflect NetWare's acceptance as a standard for network computing. Banyan, which is privately held, reported 1990 revenues up 23 percent from 1989. Net earnings rose 24 percent to $4.7 million. The company credits the increases on users migrating from simple networks to enterprise LANs. Both companies have benefited from increased international sales.
Network Equipment Technologies Inc (NET) CEO Bruce Smith stepped down following the company's first operating loss. The Redwood City, CA-based company posted a $13.3 million net loss and a $21.9 ...million pretax loss, for its first quarter ending Jul 1, 1990. Revenue was down 38 percent from the same quarter in 1989. Poor financial performance is blamed on a lack of new account sales in the last half of fiscal 1990. The company is trying to rebound from improprieties regarding product orders and shipments. Concern among its customers may have affected buying decisions. NET Pres and COO Daniel Warmenhoven will replace Smith as CEO. Smith will remain as chairman of the board until Dec 31, 1990.
The long-distance market has continued its growth, as evidenced by the record earnings and revenue posted by MCI Communications Corp, AT&T and US Sprint Communications Co. MCI reported earnings of ...$150 million for its 2nd qtr, 1989, more than double what it reported for the same quarter in 1988. MCI posted sales of $1.59 billion for the quarter, up 31 percent from the $1.22 billion in the same quarter of 1988. AT&T reported profits of $699 million for its 2nd qtr, 1989, up 18 percent from the $594 million it posted in the same quarter in 1988. It attributes a 9.8 percent increase in long-distance sales as a primary reason for its increased earnings. US Sprint experienced a 30 percent jump in 2nd qtr revenue, from $799.2 million in 1988 to $1.04 billion in 1989. The company reported $48.1 million in operating income, compared to an operating loss of $98.3 million in the 2nd qtr of 1988.
3Com Corp's fourth-quarter financial report will show sales and revenue below Wall Street analysts' estimates. Company officials expect revenue of about $112 million, up 46 percent from year-earlier ...quarterly sales but below analysts' predictions of $115 million to $120 million. Earnings per share are likely to be below analysts' expected 38 cents to 41 cents range, 3Com officials say. Slow terminal-to-host product sales and costs related to increasing the size and training of 3Com's sales force are factors in the quarterly returns. 3Com stock prices dropped 28 percent following the announcement but analysts say they have confidence in the firm's basic solidity. Fiscal 1989 sales are expected to be about $385 million, up 53 percent from 1988. Earnings per share are expected to increase 30 to 35 percent over 1988 earnings of 91 cents per share. Growth in 1990 is expected to be 30 to 45 percent range, company officials say.
Improved earnings and revenue for the 2nd qtr ended June 30 are reported by all but two regional Bell operating companies (RBOCs). Ameritech reports the largest gain with $351.5 million, up 27 ...percent from the 2nd qtr of 1987, and revenue of $2.48 billion, up from $2.37 billion in the year-earlier quarter. The company's results are boosted by its $42.1 million sale of its 17 percent interest in the Canadian cellular company, Cantel. Southwestern Bell Corp reports $212.9 million in earnings, down from $248.8 million, while revenue increases to $2.03 billion from $1.89 billion. The company says its lower earnings reflect a sagging regional economy. Bell Atlantic Corp reports $2.58 billion in revenue, down from $2.64 billion, while earnings increased 5.5 percent to $344.1 million, up from $326.1 million. Financial results from the other four RBOCs are also examined.
Computer Associates International Inc.'s EasyBusiness Systems General Ledger and Financial Reporter is a computerized accounting system which becomes a very adaptable report generator. The Financial ...Reporter module creates reports using complex formatting codes. Learning the system requires time and effort, but designing a financial report is tedious. Financial statements are made by generating file specifications; they also appear on the disk, and in the documentation. The package sells for $595.
DEC has reported a loss of $300 million for the quarter ending Mar 31, 1992, citing the sluggish economy and slow sales of its minicomputers. The vendor has cut its work force by 4,900 in nine months ...and plans to reduce staff further in FY 1993. Analysts expect DEC's losses to continue until at least the end of 1992, or the middle of DEC's fiscal year. Company founder and president Kenneth Olsen has come under fire for being 'out of touch' with his company, but users remain optimistic that the firm will recover. DEC's future depends on alliances with Microsoft Corp and other vendors and on an emphasis on networking, according to most observers. DEC and Microsoft are working to tightly couple the Windows desktop environment with DEC's enterprise-wide networks and to port the Windows NT operating system to DEC's Alpha microprocessor. Some observers also say that DEC will see very large returns on sales of its Pathworks network operating system.
Novell Inc records a $4 million loss for 4th qtr 1994, citing costs of acquiring WordPerfect Corp and Borland International Inc's Quattro Pro spreadsheet business as a reason. Earnings are $77 ...million, not counting acquisition-related items, and revenue is $489 million. Industry observers expected a drop, and they say Novell's challenge is to absorb its acquisitions and integrate its product lines. Some analysts are doubtful about Novell's prospects, pointing to recurring losses. Novell posted a loss in 3rd qtr 1993, also because of costs associated with acquisitions. Novell's customers are optimistic that Novell's new CEO, Robert Frankenberg, can deal with the company's problems.
