Conference 7.286::digital

    The report was probably based on Palmer's speech at the Annuial Meeting
    yesterday. The Boston Globe Business section this morning has the same
    report. I don't have it with me, but the gist of the article was that
    Palmer said he foresees a return to profitability within a year ( I
    think is what was said). On a darker note, the article says that he
    reports "layoffs will continue". The familiar numbers are quoted, to
    the effect that we have shed some 15,000 jobs, are now at 93,000
    employees, and will need to cut a further x,000 ( read 5-10,000).
    It would have been nice if a summary of Palmer's speech could
    have been put on VTX yesterday in the P.M., too late for the papers
    but early enough for employees to get a hint of what he was going to
    say. But mayne that would have violated some stock-related regulation
    since I assume that this would have the effect of boosting the
    share prices. One can always hope!
    Bruce

    The Globe said that the point was that *this fiscal year* would be
    profitable. That means that Q2, 3, and 4 would offset the Q1 loss.

    Bob Palmer's Speech is in today's Worldwide Livewire

    re: .1
    
    	Bruce, the 7 page text of Palmer's speech was on livewire
    yesterday (11/4) at 4:30 PM. note: I printed out a copy of it
    just before I left the office to go home.
    
    							regards,
    								Bob
    P.S.
    	I assume that they had to wait until Wall Street
    	closed the market at 4:00 PM before they posted it.
    

   Well, here's what's on LIVE WIRE:    
    
   "... Our employees have gone through challenging and sometimes dispiriting 
   times.  On behalf of the Board and our shareholders, I want to take this 
   opportunity to thank all of our employees worldwide, personally and 
   publicly, for their loyalty and their pride in what Digital stands for 
   and what we can accomplish working together -- and for their invaluable 
   contributions to the success we have been able to achieve in a relatively 
   short time.
     The new fiscal year will bring continued challenges, but we remain 
    confident about our long-term future.  My confidence in that future is 
    based on the progress we have already achieved.  
     Our goal is to continue to demonstrate year-over-year improvements 
    as we continue on our recovery plan to profitable growth.
     Some of you have been loyal shareholders for many years.  I hope 
    that you all share my optimism for Digital's future.  
     I believe that we have made significant progress to position 
    Digital for sustained profitability.  
    
|    In the next year, we will continue to improve our operations and 
|    we fully intend to restore profitability..."
    
----------------------------------------------------------------------    
    
And here's what's on AP:    
                                                         
Executive News Svc.

RTf  11/04 1335  Digital<DEC.N>chief vows profits, won't say when

    BOSTON, No forecast on the timing of a turnaround for the loss-making 
    computer group.
    
   "Although I am not satisfied with any loss, we are well on our way to
    building a strong lasting foundation for sustainable profitability," 
    Palmer told shareholders at Digital's annual meeting.
   
   "We intend to retore profitability. But it's impossible to forecast, and I
    don't intend to forecast in the short term," he said.
 
----------------------------------------------------------
    
    I'm confused.
    
                                                          

    Re: .6  > I'm confused.
    
    I'm dispirited!
    
    

    so what's confusing?  Bob has a speech prepared (the Livewire text), he
    presents the speech before the stockholders (probably differs in little
    nuances from the text), and the press reports what they heard (here's
    where the tin-can and string comes in).
    
    Mark

    This is what the WSJ reported.
    
    ... Robert B. Palmer, said a return to profitability in the current
    fiscal year ending June 30 is a "reasonable expectation" but wouldn't
    make a specific forecast.
    
    ... "assuming a relatively stable environment," Digital would continue
    to cut costs and tighten its work force, but at a somewhat slower pace
    than in fiscal 1993 when 15000 jobs were cut.
    
      ... 25 million preferred shares were authorized, but no plans to
    issue the shares.

    Re: >"...in the next year"
    Sounds to me like downplaying expectations of profitability in FY94.
    
    

    RE's:
    
    What is the basis for BP to say "profit will return"?
    For starters I have yet to see the first really competitive Digital
    advert promoting the AXP.
    
    Add's here in Europe show bottles of wine and a bunch of grapes added
    with the text"putting imagination to work" The wine color in the bottle
    is red and the grapes beside it are for white wine, confusing huh?
    
    People have asked me if Digital is going into the wine industry.
    
    I better keep my opinion to myself......
    
    Jan, ;^/

    	I think we could be successful in that industry. There's certainly
    enough whining to go around. We might as well sell the excess.

Steve,
Before we can sell it we have to know how we're going to market and
package it. What metric will we use? Who will drive the issue? How will
we service it? Who gets the revenue? Which VP will handle it? As, I'm
sure you can see, you've jumped way ahead. Slow down and get with the culture...
OK?

    
        RE:  .11
    
        Well, white wine from red grapes is not unusual, but red wine 
        from white grapes certainly is.
    
        Is that where you're supposed to "put imagination to work"? 
        A little too subtle, if that's the message.  Maybe that's 
        aimed at the oenophile market?  Which CBU would that be: 
        Entertainment???
    
        But after a few bottles of red or white, I could imagine anything!
    
    
        Peter
    

That Wine Ad does sound a bit obscure! Here in the UK we are using the 
Imagination theme to promote Alpha AXP through the tag line...

"Imagine being the one without Alpha AXP".

Apart from press ads and posters, we sponsored a supplement in the Sunday 
Times which also had a competition for an Alpha PC which attracted 17,000
entrants! Our lorries are being painted with the tag line, we now have 
headed paper and compliments slips also with the tag line. All employees 
should receive a car window sticker with the tag line with the UK company 
magazine this month. We also have strong PR and Merchandising campaigns 
backing this up.

This campaign positions Alpha AXP as the superior choice and illustrates
how an IT Manager will feel if he chooses anything else.

Dave.

>That Wine Ad does sound a bit obscure!

    The wine ad was a one-off, because Digital has been in Holland for 25
    years now. The bottle & wine picture was on billboards, magazines, and on
    the back of a few national newspapers. The Digital logo was only visible
    to those who deliberately looked for it. I'd seen the ad and thought it
    was for a supermarket who advertise in a similar way. Only after I was
    told that Digital had placed such-and-such ads I looked back and indeed
    noticed them.

    Sorry to sound negative.

>"Imagine being the one without Alpha AXP".

    These ads are placed weekly in the computer magazines overhere.