Data General Corp. Rtgs Placed on S&PWatch Positive.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 8/7/97-- Standard & Poor's today has placed its ratings of Data General Corp. on CreditWatch with positive implications (see below), reflecting the progress that the company has made in restoring profitability, coupled with improved financial flexibility. Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). actions over the recent past may provide a basis for sustained profitability going forward. Westboro, Mass.-based Data General has transitioned away from its higher-margined proprietary minicomputer (1) An earlier medium-scale, centralized computer that functioned as a multiuser system for up to several hundred users. The minicomputer industry was launched in 1959 after Digital Equipment Corporation introduced its PDP-1 for $120,000, an unheard-of low price for a computer in business, and realigned its cost structure to compete more effectively in the growing, but lower margined, industry standard workstation and server segments. Additionally, the recent decision to incorporate the Intel architecture for new generation servers will significantly enhance its ability to support a broader range of software applications. Complementing its servers are its disk arrays, sold primarily through OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and relationships, and new products geared toward the Internet appliance Also called "information appliance," "smart appliance," and "Web appliance," it is a device specialized for accessing the Web and/or e-mail. Designed for ease of use, it plugs into a telephone jack or LAN connection for Internet hookup. marketplace. While the company had a combined loss for its past five fiscal years exceeding $200 million, profitability trends have improved, with Data General reporting $39 million of net income for the nine months ending June 29, 1997 and $28 million of net income for its fiscal year ended Sept. 28, 1996. Cash and investments of about $335 million provide the company with a cushion Cushion In the context of project financing, the extra amount of net cash flow remaining after expected debt service. cushion See call protection. to withstand near-term business disruptions, and the balance sheet should improve with the pending conversion of a debt issue. Standard & Poor's will evaluate management's strategies in the rating review, which will focus on the sustainability of current operating trends. -- CreditWire -0- RATINGS PLACED ON CREDITWATCH WITH POSITIVE IMPLICATIONS Data General Corp. Corp credit rtg B+ Sub debt B- CONTACT: Philip Schrank, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (1) 212-208-8843 |
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