Amdahl announces third-quarter earnings.Corporation today reported third-quarter net income of $20,057,000 or 17 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on revenues of $350,016,000. That compares to earnings of $14,293,000 or 12 cents per share and revenues of $364,210,000 in the third quarter of 1994. Through the first nine months of 1995, Amdahl has earned $66,893,000 or 56 cents per share on revenues of $1,100,208,000. In the same period last year, net income amounted to $33,919,000 or 29 cents per share on revenues of $1,139,910,000. Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. improved during the quarter, rising to 40.7 percent from 37.9 percent in the third quarter of 1994 and 39.2 percent in the second quarter this year. This in part reflects processor sales that continue to be much richer in upgrades than in complete new systems, a situation that enhances margins but contributes lower revenues. Average processor pricing was essentially unchanged from second-quarter levels. Amdahl's three emerging businesses accounted for 15 percent of sales in the quarter, up from 9 percent in the same period a year ago, with good gains reported in sales of open systems products and in consulting services provided by Amdahl's Business Solutions Group. The third new business, applications development software, also enhanced its competitive position earlier this month with the introduction of Huron ObjectStar 3.0, a new software release that adds support for Windows and Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. . Third-quarter ObjectStar sales were below expectations, however, as customers awaited availability of the new release. Amdahl's data storage business continued to negatively impact both revenues and earnings during the quarter. Storage sales were significantly lower than in the third quarter a year ago and declined from already depressed levels in the second quarter of this year. Details of a new line of storage products were announced in September. Available early next year, those new Spectris subsystems will employ RAID (redundant arrays of inexpensive disks Redundant Arrays of Inexpensive Disks - Redundant Arrays of Independent Disks ) technology, making them inherently less expensive to manufacture than the current line and better able to compete in today's price-sensitive marketplace. Also announced in the third quarter was Amdahl's new Millennium line The Millennium Line is the second line in the SkyTrain rapid transit system in Greater Vancouver, Canada. The line is owned and operated by TransLink. History When the Expo Line opened in 1985, an extension to Lougheed Mall in the east Burnaby was proposed. of large-scale processors, which are based on low-cost CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. (complementary metal oxide semiconductor See CMOS. (integrated circuit) Complementary Metal Oxide Semiconductor - (CMOS) A semiconductor fabrication technology using a combination of n- and p-doped semiconductor material to achieve low power dissipation. ) technology and will be introduced in mid-1996. During the third quarter, Amdahl also accelerated efforts to expand the services sector of its emerging businesses by making a $90-million tender offer on September 27 for DMR (Digital Media Receiver) See digital media hub. Group Limited. DMR is a leading international provider of information-technology services with revenues last year of approximately $220 million. Additional bidders for the company have since surfaced, but Amdahl already owns 36 percent of DMR s shares and remains optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about successfully completing this acquisition. To finance such growth, the company continues to carefully manage expenses and strengthen its balance sheet. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the third quarter remained at the same level as a year ago, and cash, net of debt, rose to $683 million, up from $498 million in the third quarter a year ago and $670 million in the second quarter of 1995. With sales last year in excess of $1.6 billion, Amdahl is a worldwide supplier of data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a systems, software, and services for use across all types of computing environments. -0- Amdahl Corporation (AMEX: AMH) Third Quarter Ended Sept. 29, 1995 Sept. 30, 1994 Revenues $ 350,016,000 $ 364,210,000 Income Before Taxes $ 25,707,000 $ 15,493,000 Net Income $ 20,057,000 $ 14,293,000 Average Shares Outstanding 120,603,000 119,234,000 Net Income Per Share $ .17 $ .12 Nine Months Ended Sept. 29, 1995 Sept. 30, 1994 Revenues $ 1,100,208,000 $ 1,139,910,000 Income Before Taxes $ 85,743,000 $ 35,769,000 Net Income $ 66,893,000 $ 33,919,000 Average Shares Outstanding 120,267,000 118,851,000 Net Income Per Share $ .56 $ .29 CONTACT: Amdahl Corp., Sunnyvale William Stewart William Stewart may refer to:
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