Printer Friendly

DIGITAL EQUIPMENT CORPORATION REPORTS SECOND QUARTER OPERATING RESULTS

 DIGITAL EQUIPMENT CORPORATION REPORTS
 SECOND QUARTER OPERATING RESULTS
 MAYNARD, Mass., Jan. 16 /PRNewswire/ -- Digital Equipment Corporation (NYSE: DEC), the world's leading supplier of networked computer systems and services, today reported operating results for its second quarter, which ended Dec. 28, 1991.
 For the quarter, the company reported total operating revenues of $3,479,489,000,(a) up 4 percent from the $3,352,417,000 of the comparable quarter a year ago. The company reported a net loss for the quarter of ($138,327,000),(a) compared with net income of $111,141,000 of the comparable quarter a year ago. Per share results for the quarter were ($1.11) versus $.92 last year.
 For the six months ending Dec. 28, 1991, the company reported total operating revenues of $6,772,574,000,(a) up 5 percent from the $6,445,787,000 of the comparable period a year ago. Net loss for the six months was ($109,747,000),(a) versus $137,318,000 net income for the comparable period a year ago. Per share results were ($.88) versus $1.12 last year.
 "We are announcing a loss from operations for this last quarter," said Kenneth H. Olsen, president. "During the quarter we shipped approximately the same amount of equipment as in previous quarters, and we provided our customers with considerably more computing power. Our Systems Integration, consulting and services business continued to grow. But in a competitive world where most customers are cutting back on capital expenditures, we did not see any growth in product sales and we had to adjust pricing.
 "For over two years," Olsen continued, "we have been continually increasing our efficiency. We are in the midst of programs to even further increase our efficiency and we anticipate that they will pay off in the near future."
 Senior Vice President, Operations, John F. Smith stated, "Our balance sheet is strong and stable. Digital has the resources and flexibility to continue to invest in the leadership technologies, products and services that our customers have come to expect. Although we are disappointed by the results of this quarter, we remain confident in our overall strategy and investments."
 "We are accelerating our efforts to restore profitability both through cost containment measures and through capitalizing on opportunities for revenue growth by expanding markets and channels," Smith added. "In October we introduced the world's fastest microprocessor, new user-based software licensing and Network Application Support (NAS) packages. In early December we announced a broad array of leadership RISC hardware, software and support services. We are convinced that through our efforts to expand revenue and contain costs we will weather the effects of this worldwide economic downturn and return the company to improved levels of profitability."
 Digital Equipment Corporation, headquartered in Maynard, Mass., is the leading worldwide supplier of networked computer systems, software and services. Digital pioneered and leads the industry in interactive, distributed and multi-vendor computing. Digital and its partners deliver the power to use the best integrated solutions - from desktop to data center - in open information environments.
 ----
 NOTE: (a) Includes two months of operating results from the Information Systems Division of Philips Electronics, acquired effective Oct. 28, 1991 and three months results from Digital Kienzle acquired effective January 1991.
 OPERATING RESULTS FOR THE SECOND QUARTER ENDING:
 THREE MONTHS ENDED
 Dec. 28, 1991 Dec. 29, 1990
 Product sales $ 1,939,387,000 $ 1,989,325,000
 Services & other revenues 1,540,102,000 1,363,092,000
 Total operating revenues 3,479,489,000 3,352,417,000
 Cost of product sales 1,092,640,000 924,077,000
 Service expenses 938,837,000 822,657,000
 Total cost of sales 2,031,477,000 1,746,734,000
 Research & engineering 419,944,000 403,857,000
 Selling
 general & administrative 1,175,583,000 1,066,057,000
 Net interest (income)/expense (11,761,000) (20,049,000)
 Income/(loss) before taxes (135,754,000) 155,818,000
 Income taxes 2,573,000 44,677,000
 Net income/(loss) (138,327,000) 111,141,000
 Average number of shares
 outstanding 124,257,437 121,326,058
 Net income/loss) per share ($ 1.11) $ .92
 SIX MONTHS ENDED
 Dec. 28, 1991 Dec. 29, 1990
 Product sales $3,802,236,000 $3,854,883,000
 Services & other revenues 2,970,338,000 2,590,904,000
 Total operating revenues 6,772,574,000 6,445,787,000
 Cost of product sales 2,000,475,000 1,802,092,000
 Service expenses 1,827,129,000 1,602,365,000
 Total cost of sales 3,827,604,000 3,404,457,000
 Research & engineering 828,665,000 805,809,000
 Selling
 general & administrative 2,227,228,000 2,089,633,000
 Net interest (income)/expense (32,330,000) (44,832,000)
 Income/(loss) before taxes (78,593,000) 190,720,000
 Income taxes 31,154,000 53,402,000
 Net income/(loss) (109,747,000) 137,318,000
 Average number of shares
 outstanding 124,546,908 122,550,473
 Net income/(loss) per share ($ .88) $ 1.12
 Q2 - FY 92
 Product sales $1,939,387,000
 Service and other revenues $1,540,102,000
 Total operating revenues $3,479,489,000
 Cost of product sales $1,092,640,000
 Service expense $938,837,000
 Total cost of sales $2,031,477,000
 Gross margin 41.6 pct.
 Research & engineering $419,944,000
 SG&A (selling, general & administration) $1,175,583,000
 Operating income/(loss) $(147,515,000)
 Operating margin (4.2 pct.)
 Interest income $(27,785,000)
 Interest expense $16,024,000
 Income/(loss) before income taxes $(135,754,000)
 Pre-tax margin (3.9 pct.)
 Taxes (total federal, state and foreign) $2,573,000
 Effective tax rate 1.9 pct.
 Net income/(loss) $(138,327,000)
 EPS $(1.11)
 Average shares outstanding $124,257,437
 BALANCE SHEET - Q2 FY92
 Cash & cash equivalents $1,694,012,000
 Acoounts receiveable (net) $3,373,560,000
 (RE: A.R. days sales outstanding) 87 days
 Inventories: Raw materials 315,941,000
 Work in progress 589,803,000
 Finished goods 887,984,000
 Total $1,793,728,000
 Prepaid expenses $411,124,000
 Deferred income tax charges, net $427,700,000
 Total current assets $7,700,124,000
 Net property, plant & equipment $3,675,294,000
 Total assets $11,943,795,000
 Short term debt & current portion of ltd. $82,855,000
 Total current liabilities $4,404,936,000
 Deferred tax credits net $14,600,000
 Long term debt $44,417,000
 Total liabilities $4,463,953,000
 Stockholder's equity $7,479,842,000
 Book value per share $60.02
 Capital spending (addition to PP&E) $155,758,000
 Depreciation & amortization $202,965,000
 Non U.S. revenues $2,248,335,000
 or 65 pct.
 Total employee population approximately 119,500
 -0- 1/16/92
 /CONTACT: Mark A. Steinkrauss, 508-493-7182 or Bradley D. Allen, 508-493-8009, both of Digital Equipment Corporation/
 (DEC) CO: Digital Equipment Corporation ST: Massachusetts IN: CPR SU: ERN


DD -- NE001 -- 0340 01/16/92 08:33 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 16, 1992
Words:1171
Previous Article:CONSOLIDATED PRODUCTS, INC. ANNOUNCES FIRST QUARTER RESULTS
Next Article:ROLLINS TRUCK LEASING REPORTS FIRST FISCAL QUARTER RESULTS
Topics:


Related Articles
DIGITAL EQUIPMENT CORPORATION REPORTS YEAR-END RESULTS
DIGITAL EQUIPMENT CORPORATION REPORTS YEAR-END RESULTS
DIGITAL EQUIPMENT CORPORATION REPORTS FIRST QUARTER OPERATING RESULTS
DIGITAL EQUIPMENT CORPORATION REPORTS IMPROVED SECOND QUARTER OPERATING RESULTS AND SIX PERCENT REVENUE GROWTH
DIGITAL EQUIPMENT CORPORATION REPORTS SIX PERCENT REVENUE GROWTH AND IMPROVED OPERATING RESULTS FOR THIRD QUARTERS
DIGITAL EQUIPMENT CORPORATION REPORTS FIRST QUARTER OPERATING RESULTS
DIGITAL EQUIPMENT CORPORATION REPORTS SECOND QUARTER OPERATING RESULTS
DIGITAL EQUIPMENT CORPORATION REPORTS SECOND QUARTER PROFIT
DIGITAL EQUIPMENT CORPORATION REPORTS THIRD QUARTER NET INCOME OF $74 MILLION
Digital Equipment Corporation Amends Third Quarter Financial Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters