Conference 7.286::digital

    Service Expenses increases to $779,708,000 from $729,798,000. The
    difference is $49,910,000. General & Administrative increases to
    $1,023,576,000 from $938,967,000 that is $84,609,000. It will be
    interesting to see these two areas in details.
    

    94.6% of the earnings can be assigned to interest income.

[Forwardings deleted]



                  I N T E R O F F I C E   M E M O R A N D U M

                                        Date:     18-Oct-1990 07:57am EDT
                                        From:     BRAD ALLEN
                                                  ALLEN.BRAD AT a1 at witnes at pko
                                        Dept:     INVESTOR RELATIONS
                                        Tel No:   223-8009

TO: See Below

Subject: Q1 FY91 Press Release - Went out 7:30 a.m. Thurs., 10/18/90


**********THIS MESSAGE IS FROM MARK STEINKRAUSS AND BRAD ALLEN********



FOR FURTHER INFORMATION:
MARK A. STEINKRAUSS
(508) 493 - 7182

BRADLEY D. ALLEN
(508) 493 - 8009



                 DIGITAL EQUIPMENT CORPORATION REPORTS

                        FIRST QUARTER EARNINGS

MAYNARD, MA -- OCTOBER 18, 1990


     Digital Equipment Corporation (NYSE:DEC), the world's leading 
supplier of networked computer systems and services, today reported 
earnings for its first quarter, which ended September 29, 1990.

     For the quarter, the Company reported total operating revenues of 
$3,093,370,000, compared with the $3,131,190,000 of the comparable 
quarter a year ago.  Net income for the quarter was $26,177,000, 
compared with last year's first quarter net income of $150,783,000.   
Quarterly earnings per share were $.21 versus $1.20 last year.

     "We are encouraged by some improvement in our U.S. business in 
the quarter and the continued success of our worldwide systems 
integration efforts," said John F. Smith, Senior Vice President of 
Operations.  "Our new VAX 9000 mainframe computer is shipping and our 
workstation business is accelerating.  In addition, many new products 
that serve a wide variety of customer needs will be announced over the 
next several weeks."

     "While the pace of business in Europe and other parts of the 
world has slowed, we continue to be encouraged by positive customer 
reaction to both existing and upcoming hardware, software and service 
products," he said.  "Despite uncertain economic conditions, our 
worldwide services business grew 8% this quarter, maintaining a trend 
of many years."

     "Although operating results for our first quarter were not 
satisfactory, the company is making progress in identifying and 
eliminating expense items not critical to its success," noted Smith.  
"In addition, every function in the company has established 
productivity programs designed to help us return to a more profitable 
status."

     "Several months ago we announced that about 3000 persons had 
selected a voluntary financial support option during the fiscal year 
that ended in June.  This contributed to a net reduction of 1800 
people in our total workforce last year," added Smith.  "We have 
initiated a voluntary financial support option to reduce the workforce 
size by 5000 more employees in this fiscal year.  Other activities 
include consolidating our businesses to decrease our total facility 
requirements, reducing discretionary spending, increasing automation, 
using our own computer network to enhance productivity, and continuing 
to examine every aspect of our business to locate cost-cutting 
opportunities."

     "Digital is focusing on mainframe-style computing, client/server 
computing, and systems integration," Smith said.  "Looking at some 
current activities provides a view of our accomplishments in these 
areas.  One important area is our VAX 9000 computer system effort. 


DIGITAL EQUIPMENT CORPORATION
REPORTS FIRST QUARTER EARNINGS
PAGE TWO OF FOUR


To date more than 75 of these systems have been delivered, and we are 
currently quoting deliveries as far out as the end of our third fiscal 
quarter.  We have been pleased by excellent acceptance across all 
major industries."  

     "While mainframe-style systems focus on organizational 
productivity, client/server computing focuses on departmental and 
individual productivity," stated Smith.  "Here, Digital is committed 
to UNIX computing, as evidenced by both the number of systems and 
workstations we have introduced in less than two years, and the fact 
that our customers have access to more than 7000 UNIX applications.  
Our RISC-based computers are built on a foundation of tough, 
innovative engineering.  We've designed and built the fastest 
interconnect in the RISC business and offer the highest level of 
graphics board integration available today.  Most important, with the 
DECstation 5000 workstation we sell the fastest desktop graphics 
machine in the world.  All this is just a part of our customer 
commitment in client/server computing."
 
     "Digital's leadership Network Application Support (NAS) software  
enables organizations to integrate applications running on systems 
from many vendors into a single, enterprise-wide network," he 
remarked.  "For example, NAS supports MS-DOS, OS/2, Macintosh, UNIX as 
well as VMS operating systems.  No other company does this.  Digital 
helps customers plan, design, implement, and manage their systems and 
networks.  This systems integration work passed the $1 billion mark in 
revenues for the company this past year."

     On October 16, Digital further expanded its focus on the small 
and midsize business market with a new computer system, the 
applicationDEC 433MP.  Based on up to six 33MHz Intel 486 processors, 
this system brings expandability and thousands of applications to 
these customers.

     "During this month Digital is planning to make several 
announcements of products and enhancements for VAX/VMS systems, UNIX 
systems, and small business computing, all integrated using NAS," he 
said.  "We will be announcing significant new directions in the 
VAX/VMS product line, including major price/performance enhancements."

     During the first quarter the company repurchased 3.7 million 
shares of its stock for $241 million, which completes the 5 million 
share stock repurchase program authorized in April by its Board of 
Directors.

     Digital Equipment Corporation, headquartered in Maynard, 
Massachusetts, is the leading worldwide supplier of networked computer 
systems and services.  Digital offers a full range of computing 
solutions and systems integration for the entire enterprise -- from 
the desktop to the data center.

VAX, VAX 9000, DECstation 5000, VMS, and applicationDEC are 
trademarks of Digital Equipment Corporation.

Macintosh is a trademark of Apple Computer, Inc.  OS/2 is a registered 
trademark of International Business Machines Corporation.  MS-DOS is a 
registered trademark of Microsoft Corporation.  UNIX is a registered 
trademark of American Telephone & Telegraph Company in the U.S. and 
other countries.


DIGITAL EQUIPMENT CORPORATION
REPORTS FIRST QUARTER EARNINGS
PAGE THREE OF FOUR

            OPERATING RESULTS FOR THE FIRST QUARTER ENDING:


     			     SEPTEMBER 29, 1990	   SEPTEMBER 30, 1989

PRODUCT SALES		     $  1,865,558,000	   $  1,994,408,000

SERVICE & OTHER REVENUES        1,227,812,000	      1,136,782,000

TOTAL OPERATING REVENUES        3,093,370,000	      3,131,190,000

COST OF PRODUCT SALES	          878,015,000	        882,130,000

SERVICE EXPENSES	          779,708,000	        729,798,000

TOTAL COST OF SALES 	        1,657,723,000	      1,611,928,000

RESEARCH & ENGINEERING	          401,952,000	        404,131,000

SELLING
 GENERAL & ADMINISTRATIVE       1,023,576,000	        938,967,000

NET INTEREST (INCOME)/EXPENSE     (24,783,000)	        (22,235,000)

INCOME BEFORE INCOME TAXES         34,902,000           198,399,000

INCOME TAXES		            8,725,000	         47,616,000

NET INCOME		           26,177,000	        150,783,000

AVERAGE NUMBER OF SHARES               
 OUTSTANDING		          123,774,888	        125,768,130

NET INCOME PER SHARE	                $ .21	             $ 1.20


DIGITAL EQUIPMENT CORPORATION
REPORTS FIRST QUARTER EARNINGS
PAGE FOUR OF FOUR

                               Q1 - FY91


PRODUCT SALES....................................  $ 1,865,558,000    
SERVICE AND OTHER REVENUES.......................    1,227,812,000
TOTAL OPERATING REVENUES.........................    3,093,370,000
COST OF PRODUCT SALES............................      878,015,000
SERVICE EXPENSE..................................      779,708,000
TOTAL COST OF SALES..............................    1,657,723,000
                                     GROSS MARGIN            46.4%
RESEARCH & ENGINEERING...........................      401,952,000
SG&A (SELLING, GENERAL & ADMINISTRATIVE).........    1,023,576,000
                                 OPERATING MARGIN              .3%
INTEREST INCOME..................................      (31,729,000)
INTEREST EXPENSE.................................        6,946,000
INCOME BEFORE INCOME TAXES.......................       34,902,000
                                   PRE-TAX MARGIN             1.1%
TAXES (TOTAL FEDERAL, STATE AND FOREIGN).........        8,725,000
                               EFFECTIVE TAX RATE              25%
NET INCOME.......................................       26,177,000
EPS..............................................             $.21
AVERAGE SHARES OUTSTANDING.......................      123,774,888

                        BALANCE SHEET - Q1 FY91


CASH & CASH EQUIVALENTS..........................    1,597,908,000
ACCOUNTS RECEIVABLE (NET)                            3,338,580,000      
 (RE:  A.R. DAYS SALES OUTSTANDING)..............          97 days
INVENTORIES:  RAW MATERIALS.......... 396,538,000
              WORK IN PROCESS........ 498,002,000
              FINISHED GOODS......... 772,768,000
                               TOTAL.............    1,667,308,000
PREPAID EXPENSES.................................      415,473,000
DEFERRED INCOME TAX CHARGES, NET.................      500,000,000
TOTAL CURRENT ASSETS.............................    7,519,269,000
NET PROPERTY, PLANT & EQUIPMENT..................    3,838,061,000
TOTAL ASSETS.....................................   11,519,267,000
SHORT TERM DEBT (CURRENT PORTION OF LTD).........       12,475,000
TOTAL CURRENT LIABILITIES........................    3,352,427,000
DEFERRED TAX CREDITS NET.........................       28,000,000
LONG TERM DEBT...................................      150,228,000
TOTAL LIABILITIES................................    3,530,655,000
STOCKHOLDER'S EQUITY.............................    7,988,612,000
BOOK VALUE PER SHARE.............................            67.01
CAPITAL SPENDING (ADDITION TO PP&E)..............      173,235,000
DEPRECIATION & AMORTIZATION......................      186,500,000
NON U.S. REVENUES................................    1,767,666,000
                                                           OR 57%
TOTAL EMPLOYEE POPULATION APPROXIMATELY..........          123,500


Distribution:
 
DON ZERESKI @CORE
DICK YEN @TAO
HARVEY WEISS @CORE
BILL STRECKER @CORE
DAVID STONE @GEO
PETER SMITH @CORE
JACK SMITH @CORE
JOHN SIMS @CORE
GEOFF SHINGLES @REO
GRANT SAVIERS @CORE
BRUCE J RYAN @CORE
DICK POULSEN @CORE
BOB PALMER @CORE
JIM OSTERHOFF @CORE
KEN OLSEN @CORE
AL MULLIN @CORE
ED MCDONOUGH @CORE
JACK MACKEEN @CORE
BILL JOHNSON @CORE
ILENE JACOBS @ CORE
DAN INFANTE @CORE
BOB HUGHES @CORE
MARTY HOFFMANN @CORE
WIN HINDLE @CORE
BILL HEFFNER @CORE
BILL HANSON @CORE
DAVE GRAINGER @CORE
ROBERT GLORIOSO @CORE
ROSE ANN GIORDANO @CORE
SAM FULLER @CORE
PIER-CARLO FALOTTI @GEO
BILL DEMMER @CORE
JIM CUDMORE @CORE
HENRY CROUSE @CORE
GEORGE CHAMBERLAIN @CORE
DON BUSIEK @CORE
JOHN ALEXANDERSON @CORE
PHYLLIS LENGLE @AKO
KEN LEBEL @AKO
GAIL MANN @CORE
 

    re.2 -- isn't that interest we PAID??  Don't have the thing in front of
    me, but think it was in bow-legs.

    re: .4
    
    Call me stupid, but I would think that the command ".0" is fewer
    keystrokes than "REPLY" and all the text that you typed in...
    
    From the base note:
    
                     OPERATING RESULTS FOR THE FIRST QUARTER ENDING:
                                 SEPTEMBER 29, 1990          SEPTEMBER 30,1989
    Product Sales                  $  1,865,558,000            $ 1,994,408,000
    Service & Other Revenues          1,227,812,000              1,136,782,000
    					.
    					.
    					.
    Net Interest (Income)/Expense       (24,783,000)               (22,235,000)
                  ^^^^^^
    
    (Income)/Expense, not Income/(Expense).
    
    Al
    

RE: .6

Nonetheless, we are supposed to be trying to run leaner than in the past.

--PSW

	... at least the Field can compare DIRECT revenue production to the 
expense of doing it, more than quite a few groups in this company can do!  I 
don't know the world-wide numbers, but I would bet our median billing rate in 
EIS is $100/hour.  WE need MORE people doing that, not fewer or the same!  

    Some interesting comparisons with the final Q4/FY90 results:
    
                               Sept. 29, 1990     June 30, 1990
    
    Cash & equivalents             $1.6B              $2.0B
    Accts Receivable               $3.3B              $3.2B
    AR Days outstanding              97                 86
    Inventories                    $1.7B              $1.5B
    Total Assets                  $11.5B             $11.7B
    # of employees                123,500            124,000
    Stockholders Equity            $8.0B              $8.2B
    
    
    Some of these numbers indicate poor business trends.  Although simply
    comparing 2 periods does not a long-term trend make, it should be
    considered serious enough to work to prevent the next period from
    following the same path.
    
    Mark
    

	... but the drop in cash!

	As of 11:15 the stock had dropped over $2.  Maybe some other folks have
noticed this, too!

	Should be an interesting stockholders' meeting this year?  :>)

    
    The drop in cash, is that the $400M for "restructuring"???
    

    re:  .10
    
    Where and when is the stockholders meeting this year?
    
    T

    
    Well, I noticed the DEC stock dropped to 48...- 3 as of 11:45. Any
    idea why?
    
    

Interesting?  Fat?  It's beyond OBSENITY, and it's US - each and every
one of US (that includes .6 and .8). 1023 Billion - BILLION!! - for what?
For ONE LOUSY QUARTER of G&A!!!   G&A!!??!!!

We cannot afford to be defensive with each other or to work against each
other in any way.  So, get the hairs down on your backs, and let's think
about a few things (yes, we can and will also DO).

	This is not about getting revenue or how we can directly
	connect our activities to revenue.  This is about how much
	of that revenue turns into PROFIT.  Over three BILLION in
	revenues, and our profit is 26 Million.  I am just too beside
	myself to comment.  OK, try to calm down - what can we do?  
	One way to start is to measure the projected profit margin of
	any sale, and not just it's revenue value.  What earthly good
	is a 2 Million dollar contract if it costs the Company 2.2M
	to deliver.

	Something to also really think about - REALLY - is how much sense
	it makes to be burning ahead to increase service revenues.  All
	who work in service can be very proud of what they do to keep our
	Company's quality name and image intact with the Customer base.
	However, why do we continue to need so many to provide service if
	we are attempting to produce higher and higher quality product?
	Doesn't an increasing service revenue picture tell us that we
	are counting on ourselves to produce less superior product, and
	then run in and sell ourselves to make sure product works (and I
	mean all kinds of product, not just hard goods). 

	We need all kinds of folks to be putting themselves out of work.
	There is other work for us to do.  I just had a discussion with
	one of our MCAMs - she is offering to take a second account
	because it would make it twice as cheap for the accounts she will
	service, and she's not afraid of the extra work.  What a breath of
	fresh air - what a contrast to last week when I asked for a favor 
	to keep a Customer happy and was told "I don't get paid for
	working overtime."  This bigtime G&A sh*t has GOT TO STOP!  This
	is no "oh we'll get through it somehow" time period - this is 
	REAL CRISIS!  

We - all of us - have got to figure out how to do this more efficeintly
and one way to start is to do more.  Another way is to simply regard our
Company's money in the same manner as our own bank accounts - just ask in
your own head "would I do this?  Would I spend this much money for this,
or would I spend it at all?"  Corny, right?  Heard it 100 times already,
right?  DAMN IT, USE IT - IT WORKS!!

Let's talk with each other - don't just grumble about money wasting.  Go
up to folks and say something - we need to keep reminding each other how
valuable we need to be for OUR Company.

SHOW SOME EMOTION!


						Barb

    Hate to be overly glum but, isn't anybody concerned over the increase
    in accounts recievable.  3.3B is much to much, the savings to be
    realized by reducing this amount could be staggering.  If were in the
    finance business why don't we annouce that fact to the world?

    Here here... Loved what you said and I TOTALLY agree with you!!!!! We
    need more people that are willing to go that extra mile when it is
    needed. We need more people who are willing to work hard to make the
    company strong again instead of just coming to work and collecting a
    pay check!!!!!!
    
    LSH in Cust. Svc. and da*n proud of it!

        Re: .15 - Gee, in Jack's fireside chat he said we were decreasing
                  our AR by 6 to 10 days, not increasing it by 7 days.
        
        Of course the rest of the industry has an average AR of 45 days.
        
        
        

    Maybe they ( rest of the industry) use DEC computers and DECnet ?

    There was a note here somewhere about SPR process.
    At the end a simple question was asked. 

    Why an SPR send from the field takes days/weeks to get to the right
    Engineering group. Answer was, this is a semi manual system and we 
    ( working bees in this system ) do all to cut this time. All respect for
    bees. Then a management person said that real project is 12-18 months
    away. Fine. But it would take few days to write VTX or Rally front end
    to send an SPR from anywhere on the globe to right engineering group in
    minutes. OK , what does it have to do with Q1 results and AR ?

    We have many lousy internal systems and castles of cards protecting 
    these.
    
    					
    Why not let C&L have a look at selected pieces of our organisational
    mess ? 
    
    					respectfully submitted

RE: .19

Desipte the new system, it *still* takes SPRs from Europe at least 2 weeks,
more typically nearly a month, to travel from the CSC to our Engineering group.
I am measuring this by the dates appearing in the electronic SPR database.  It's
even worse if there's an attachment (magnetic tape, listing, etc.) associated
with the SPR.

--PSW

    Simon, I meant SPRs sent from CSCs , so you missed it completely.
    Last time I saw European problem reporting flow chart, all priority
    4 SPRs ( suggestions) were acknowledged locally and sent directly to
    relevant CSSE. 

    But this was just an example of something very easy that our internal
    processes turn to something very difficult. We are now bidding quite
    impressive network management solutions to serious customers. 
    Up till now, nobody asked us what happens with a product problem once we 
    have identified it. 

    I wonder how many similar processes get in the way of Account Receivables, 
    why does industry average is almost half ?

    re: .14  Why does it make sense to keep burning ahead with our service
    revenues?  
    
    1.  If you look at the numbers, I believe that you will
    see that product revenues declined a lot more than the cost of selling
    them.  
    
    This is a continuing industry trend.  It is the result of something
    that Digital (and most of its senior managers, I'm afraid to say)
    hasn't faced before.  Competition in a shrinking market.  Which forces
    prices (and profit margins) down.
    
    2.  If you at the numbers again, you may notice that service revenues
    increased by nearly $100M, while service expenses increased by only
    about half that.
    
    This is also an economic and industry trend.  More and more customers 
    are looking to downsize their internal MIS groups and hire experts to
    support their data centers for them, so that they can concentrate on
    their businesses.  More and more customers are looking for experts to
    make their multi-vendor systems investments work together.
    
    Service revenues are not a reflection on the quality of our products. 
    Analysts project that the SI market will grow by 30% per year through
    the mid-late 90s.  I just interviewed a sales dm last week who told me
    "the move away from products towards integration is happening faster
    than I expected even a year ago.  I'm sitting on $25M in SI business
    right now.  Our resources to deliver are the only limiting factor."
    
    The only questions that remain are:
    
    1.  Does Digital want to move into the SI market?
    2.  Will Digital make the changes it needs in order to do so
    successfully?
    
    Only time will tell.

    OK, another systems integration note, eh?

    Digital wants to be a system integrator by the simple act of declaring
    internally, "Today, I am a system integrator"

    The "only problem is resources"... what a laugh, as if there were 100
    other tougher problems that were already solved and there was just this
    teensy-weensy little insignificant problem called resources...

    Our ability to win SI business is not systemic, but rather reflects
    meeting upon meeting and memo upon memo attempting to alter Digital's
    obsession with unit hardware sales.  

    
    
    I knew I shouldn't have included the last sentence of the quote.  The
    point that I was hoping to make was that cutting back on services (.14)
    was not a good idea since SI is a rapidly growing business sector.
    
    Resources are not the only problem...just the major problem the quoted dm 
    faces.  In general, the company's SI delivery resources are less a problem 
    by number than by effective deployment.  And that is one of the things 
    Digital needs to change if it is to make a profit in this market.  
    
    Other changes include changing the metrics to reward people who SELL
    services instead of rewarding those who GIVE them away (in order to
    sell more hardware, for which sales they are currently rewarded).
    
    And giving the right people the power to do things they need to do to
    sell and deliver it...not just the responsibility for its success.
    
    Digital has been doing systems integration for quite a few years now,
    and doing quite a good job of it considering that Digital defines
    itself as a computer company and apparently considers services an 
    ancillary product.  The analysts consistantly rate Digital in the top 
    10 systems integrators, and usually in the top 5.  As I'm sure you're
    aware, Gartner recently moved Digital up to #3.  And another recent SI
    report (I can't remember which) rated us #4 in customer satisfaction.
    
    

    Working harder is good, but working SMARTER is better!  ... and I mean
    SMARTER, not tricky-er!!!
    
    We must operate SMARTER as individuals, small groups, large groups and
    one company.  And what is SMART?  Smart is:
    
    - using common sense instead of arrogant tradition
    
    - thinking high-risk things sufficiently through BEFORE acting
    
    - respecting the competition (not blinding ourselves to their
      strengths)
    
    - respecting the customer for having knowledge for what he needs
    
    - expecting high standards of business: 
    
    	- no screwing up routine things (Yes, Virginia, there are routine
    	  things in business - like accounting, benefits, payroll, contract
    	  renewals, etc.)
    
    	- not accepting lying, cheating, theft, etc. AND knowing what they
    	  are
    
    	- not giving your word (personal or company word) unless you can
    	  and are going to keep it
    
    	- once you give your word, keep it
    
    There's a whole bunch more too.  We spend way too much of our time and
    I.Q. covering up and making up for our poor standards, which result in
    unrealistic expectations.
    
    It's not smart to try to make a silk purse out of a sow's ear - it's
    just a futile attempt at trying to be tricky.  It's these attempts at
    trickiness that are Digital's worst enemy - not the competitors, the
    economy or the gods on Mt. Olympus.

Hello Again Folks,

Perhaps I did not put my service points well enough, but I was not suggesting
a cutback in services.  To many of your points, one thing I was trying to say
about all our revenues is that PROFIT not "the sale" is what needs to become
meaningful in all our efforts.

As it happens, I am involved with a group that delivers SI, CIM Solutions, etc.
Obviously, I believe that SI can be a valuable source of profit for us.

I can't help but ask myself, however, how much of the increase in service
revenues was due to contracts for SI?  At the same time, I ask myself how much
of the increase in cost of service is due to SI?

I do understand the trend toward services - I think we really need to understand
if our increase in service revenues follows a trend; what does make up that
increase?

Also, I do not wish to pick on folks who deliver services - I know of so many
who have positively been brilliant and/or heroic in regard to our Customers.
I make the same point for sales - we have got to deliver revenues with less
cost and without "giving away the store."  I could make the same point for
manufacturing - we have got to be able to deliver products that do not have a
fortune in time, material, and allocation involved.

I was really shocked beyond the pale at the G&A number, and almost more shocked
at what seemed such calm discussion about it!!!  I think I would like to see
every employee stop what they're doing for 15 seconds and SCREAM!  Then, I'd
like to see them demand, DEMAND changes.

Yes, I would like to see everyone make their own changes.  Just think, if 
everyone made themselves an example for other employess, the Company would come
ROARING back overnight!

Believe me, I am not trying to proselytize - it's too bad anyone would even
think it was necessary.

Barb

As I recall from IBM days, sales goals were established in "points" a saleman
accumulated. The points did have a relationship to system value, but not 
neatly proportional. So, if IBM wanted to diminish sales incentive to sell a 
particular system, it simply reduced its point value. If they wanted to increase
service revenue they increased (disproportionately) its point-value.

Digital might use a similar arrangement, eg., associating a point value in
relation to NOR might do the trick. It would emphasize sales where it counts the
most, ie. services.  

After all, salesmen aint stupid. They are goal driven.
Account Managers will optimize their resources towards attaining their goals.
If those goals are easier reached in striving for HW-business, then we shouldnt
be astonished by their behaviour.

Finally, I will agree that the Digital "culture" is obsessed with hardware. 
Culture must be changed from the top. As in any army, foot soldiers do not
determine strategy - though they do most of the suffering when it goes wrong,
as this conference tells with much dismay.

	RE: .27 Digital does (or at least did) this already.

			Alfred

    YES the G&A number is DREADFUL!!!!       
    
    Could it partly reflect:
    
    . the extra "Human Resources" people needed to run the transition programs?
    
    
    . the extra financial people needed to measure and control costs?
    
    Re other points:
    
    . our unit labour costs have been a difficulty in our PSS business for
      years. How does this change in the SI business?
    
    . do we have the b***s to change our culture/work force so that every
    one of us believes in and lives DELIVERY? This means living and
    breathing delivery and customer satisfaction - an emotional gut
    commitment not some airy fairy intellectual waffle.
    
    Or are we all fiddling around?
    
    Nero

    So, are we announcing our Q4 result today ???
    I hope it's good. (My opinion only, I think it's good, because our
    stock has done good for last couple of days).

    Not likely, the NYSE opens at 9:30 AM (ET) and Digital like most
    companies has always announced before the opening.
    
    Digital did not announce before market opening on July 24.

    Last year's announcement was on the 25th of July, so let's 
    keep those fingers crossed, folks ;-)

This morning's CNN business news stated that Digital, among others, would
announce financials today.

-Terry

    Wakeup call!
    
    We've already announced and I've posted them in 1541.
    
    Pat