| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 3451.1 | Do not read | ANNECY::HOTCHKISS | | Wed Oct 19 1994 10:58 | 7 |
| So-
Cost of product sales is 25% higher roughly...
We used 300m$ cash(100m per month)
DSO is STILL 83 days-we have accounts receivable of 3 Billion dollars!
R&D on the way down
Is this a horror story or what?
|
| 3451.2 | | WLDBIL::KILGORE | Help! Stuck inside looking glass! | Wed Oct 19 1994 11:17 | 3 |
|
What is Cost of Product Sales?
|
| 3451.3 | Well, there ARE positives | PARVAX::SCHUSTAK | Digital...AndProudOfIt! | Wed Oct 19 1994 11:17 | 24 |
| Re .1
Smaller gross margins should come as NO surprise, given the growth in
the PC business, and increasing inability to differeentiate many of the
other commmodity products.
R&D has been declining for 2 years...but is "more focused with less
internal overlap and competition".
DSO DOES need to improve.
Re Cash levels, not good, but we'll be seeing an infusion of $500M+ in
Q2 from the Oracle/Quantum/misc transactions
The reduction of SG&A is a VERY POSITIVE sign...I hope that is what
Wall Street keys on...light at the end of the tunnel is NOT an oncoming
train?
What do YOU think the reaction will be when we open for trading this
morning?
(And just yesterday I told my clients "we're operating very close to
breakeven" How close is close?)
Steve
|
| 3451.4 | Apple results... | LOVADA::SCHERRER | Patrick - Corp Strategic Alliances | Wed Oct 19 1994 11:25 | 171 |
| Headline: APPLE COMPUTER ANNOUNCES RECORD REVENUES AND IMPROVED EARNINGS
CUPERTINO, Calif., Oct. 17 /PRNewswire/ -- Apple Computer, Inc.
(Nasdaq-NNM: AAPL), today announced record revenues and significantly
improved financial results for its fourth fiscal quarter, which ended
September 30, 1994.
For the quarter, Apple's revenues were $2.49 billion, a 16% increase over
the fourth quarter a year ago, and represented the highest quarterly
revenues in the Company's history. Net income for the quarter was $114.7
million, or $0.95 a share compared with $2.7 million, or $0.02 a share in
the same quarter a year ago.
The Company also announced that quarterly unit shipments had exceeded the
one million unit mark for the second time in company history.
"Over the last 12 months we have significantly restructured the Company,
demonstrated our new competitiveness, and delivered these record results,"
said Michael Spindler, Apple's president and chief executive officer.
"Apple has positioned itself in several rapidly growing parts of the
industry. We have taken the volume lead in RISC-based computing for
graphics and business, and we are setting the pace in multimedia-based
computing for the home and the classroom."
Apple attributed its high unit shipment figure to strong demand during
the quarter for its multimedia-based Macintosh 630 products, its PowerBook
500 series of portable products, and its Power Macintosh desktop products.
Strong demand has led to a shortage of some Apple products, a situation
the Company is working to improve in the first fiscal quarter of 1995.
Apple announced that during the quarter it shipped more than 250,000
Power Macintosh personal computers and upgrades, bringing the total unit
figure to over 600,000 units shipped in the first seven months since
introduction. The Company has set a goal of shipping one million Power
Macintosh personal computers and upgrades in the first 12 months of
availability.
During the quarter, developer support for the Power Macintosh platform
grew. There are now nearly 300 Macintosh applications on the market which
have been optimized to take full advantage of the high performance of the
Reduced Instruction Set Computing (RISC)-based Power Macintosh system.
Recently announced applications for the Power Macintosh include Microsoft
Excel, Adobe Photoshop, Aldus Persuasion, and Claris Corporation's
MacWrite Pro.
The Company's improved earnings, compared to the fourth quarter a year
ago, were the result of strong revenue growth combined with higher gross
margins as a percentage of net sales, and lower operating expenses.
Gross margins improved to 27.2% of net sales in the fourth quarter of
fiscal 1994 from 25.7% of net sales in the same period a year ago. The
improvement in gross margins was due to both higher production volumes and
the positive impact of new product introductions, including the PowerBook
500, Macintosh 630, and Power Macintosh.
Operating expenses for the fourth quarter were 19.6% of net sales, down
from 25.4% of net sales in the fourth quarter a year ago, and represented
one of the Company's lowest operating expense ratios in its history. The
improvement in operating expenses as a percentage of net sales was due in
large part to cost reductions coming from the Company's restructuring
activities over the last 12 months.
Inventories at the end of the fourth quarter were $1.09 billion, a
reduction of $418.2 million from the fourth quarter a year ago. Cash and
short term investments at the end of the fourth quarter stood at $1.26
billion, an increase of $365.6 million compared to the fourth quarter a
year ago. Total borrowings at the end of the fourth quarter were $596.7
million, a reduction of $233.6 million from the fourth quarter a year
ago.
For Apple's fiscal year ended September 30, 1994, revenues were $9.19
billion, a 15% increase over fiscal 1993. Net income for the year was
$310.2 million, or $2.61 a share, compared with $86.6 million, or $0.73 a
share in fiscal 1993. Included in the Company's results for fiscal 1993
was a charge of $320.9 million ($198.9 million, or $1.72 per share after
taxes) for restructuring and other expenses. Included in the Company's
fiscal 1994 results is an adjustment to earnings of $126.9 million ($78.7
million, or $0.66 per share after taxes) related to a reduction in the
Company's estimates of the costs associated with its restructuring
activities.
Apple Computer, Inc., a recognized pioneer and innovator in the
information industry, creates powerful solutions based on easy-to-use
personal computers, servers, peripherals, software, online services, and
personal digital assistants. Headquartered in Cupertino, Apple develops,
manufactures, licenses and markets products, technologies and services for
the business, education, consumer, scientific & engineering and government
markets in over 140 countries.
NOTE: Apple, the Apple logo, Macintosh and PowerBook are registered
trademarks and Power Macintosh is a trademark of Apple Computer, Inc.,
registered in the US and other countries.
APPLE COMPUTER, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
Sept. 30, Sept. 24, Sept. 30, Sept. 24,
1994 1993 1994 1993
Net sales $2,493,286 $2,140,789 $9,188,748 $7,976,954
Costs and expenses:
Cost of sales 1,814,413 1,590,361 6,844,915 5,248,834
Research and
development 142,110 164,106 564,303 664,564
Selling, general and
administrative 346,352 379,169 1,384,111 1,632,362
Restructuring costs -- -- (126,855) 320,856
Total 2,302,875 2,133,636 8,666,474 7,866,616
Operating income 190,411 7,153 522,274 110,338
Interest and other
income (expense), net (5,484) (2,855) (21,988) 29,321
Income before
income taxes 184,927 4,298 500,286 139,659
Provision for
income taxes 70,272 1,634 190,108 53,070
Net income $ 114,655 $ 2,664 $ 310,178 $ 86,589
Earnings per common
and common
equivalent share $ 0.95 $ 0.02 $ 2.61 $ 0.73
Cash dividends paid
per common share $ 0.12 $ 0.12 $ 0.48 $ 0.48
Common and common
equivalent shares used
in the calculations of
earnings per share 120,178 116,592 118,735 119,125
CONSOLIDATED BALANCE SHEETS
(In thousands)
Sept. 30, Sept. 24,
1994 1993
Assets
Current assets:
Cash and short-term investments $1,257,856 $ 892,303
Accounts receivable 1,581,347 1,381,946
Inventories 1,088,434 1,506,638
Prepaid income taxes 293,048 268,085
Other current assets 255,767 289,383
Total current assets 4,476,452 4,338,355
Net property, plant, and equipment 667,100 659,546
Other assets 159,194 173,511
Total $5,302,746 $5,171,412
(In thousands)
Sept. 30, Sept. 24,
1994 1993
Liabilities and Shareholders' Equity
Current liabilities:
Short-term borrowings $ 292,200 $ 823,182
Accounts payable 881,717 742,622
Accrued compensation and benefits 136,895 144,779
Accrued marketing and distribution 178,294 174,547
Accrued restructuring costs 58,238 307,932
Other current liabilities 396,961 315,023
Total current liabilities 1,944,305 2,508,085
Long-term debt 304,472 7,117
Deferred income taxes 670,668 629,832
Shareholders' equity:
Common stock 297,929 203,613
Retained earnings 2,096,206 1,842,600
Other (10,834) (19,835)
Total shareholders' equity 2,383,301 2,026,378
Total $5,302,746 $5,171,412
/CONTACT: Bill Slakey, 408-974-3488, or Betty Taylor, 408-974-3983,
both of Apple Computer, Inc./
16:37 EDT
-
% ====== Internet DOWvision Codes
SentinelID: 782427715
MessageSeqNum: 1245
Storydate: 10/17/1994
Headline: APPLE COMPUTER ANNOUNCES RECORD REVENUES AND IMPROVED EARNINGS
MsgDate: 10/17/1994
ProductCode: PR
TransmissionTime: 1658
DisplayTime: 1658
OperationClass: N
MessageType: N
TempIndicator: P
NewsSource: PR
OriginalSource:
AccessionNumber: 000000000000
categoryCompany: AAPL
categoryIndustry: I/CPR
categorySubject: N/ERN N/PR N/WEI
categoryMarketSector: M/TEC
categoryGeographic: R/CA R/NME R/PRM R/US R/USW
|
| 3451.5 | | POBOX::BATTIS | That's why the ladys a tramp | Wed Oct 19 1994 11:44 | 11 |
|
DSO is lousy, but alot of that is due to Europe and their terms and
conditions. Most have 60-90 days to pay. US DSO is probably in the
upper 50 day range or low 60's. I don't expect that to improve vastly
in the coming year. I believe each day of DSO represents about
$30 million in cash. The stock however, will probably go up today
maybe even 1 1/2 to 2 points, Wall Street was most likely aware of our
results a few days ago.
IMHO
Mark
|
| 3451.6 | ? | RDGENG::WILLIAMS_A | | Wed Oct 19 1994 11:46 | 4 |
| SG&A down 4%
Employees (regular) down 17%
someone pass me a calculator...
|
| 3451.9 | Next quarter... | SALEM::GEORGE_N | new englanda fa sure, ayut | Wed Oct 19 1994 11:52 | 4 |
| I get the feeling that this quarter was sacrificed to assure a
profitable quarter next quarter which is the last quarter of the
calendar year. The SLT especially Bob Palmer will need to see his
prediction that "Digital will be profitable by years end" hold.
|
| 3451.10 | | TLE::REAGAN | All of this chaos makes perfect sense | Wed Oct 19 1994 12:00 | 4 |
| Is .8 a runaway TECO macro? I've seen the same "death spiral" note
6 times this morning. Where's that 1M:1 compression when you need it?
-John
|
| 3451.11 | Math was never one of my strong subjects -:) | POWDML::KGREENE | | Wed Oct 19 1994 12:00 | 10 |
| RE: " This represents a regular employment reduction of approximately
4,000 or 5 percent, and 15,000 or 17 percent, compared to with the
prior quarter and first quarter of fiscal 1994, respectively."
Palmer had indicated a goal of reducing headcount by ~20,000 by the end
of the calendar year. So, if we've reduced by 4,000 employees, it looks
like 16,000 to go during Q2? Is the headcount goal ~60,000 by end of
Q2?
Happy holidays!
|
| 3451.12 | really down 12-13% | 35857::BUCKLEY | ski fast,take chances,die young | Wed Oct 19 1994 12:01 | 15 |
| > SG&A down 4%
> Employees (regular) down 17%
>
> someone pass me a calculator...
Later in the announcement it mentions that 65 million of one time benefit was
largely offset by non-recuuring SG&A charges associated with divestures so
836 - 65 = 771 / 872 = 88.4% down about 12% (or 872/771 = 113%) which is more
in line with the employee reductions. The fact that both product and service
revenues increased was a suprise with the number of people that I have seen
disappear from both sales and Digital Consulting in the last qtr. (I expected
the number of employees to be under 70,000 -- it must be the number of new vice
presidents throwing the numbers off).
Dan Buckley, CT dc
|
| 3451.14 | inefficient ? | GVPROD::DOIGTE::Chisholm | | Wed Oct 19 1994 12:45 | 4 |
| Who would have thought a year ago that we could reduce headcount by
15,000 (17%) and still manage to grow revenue by ($110m) 4%.
Were we that inefficient ?
|
| 3451.15 | may be too subtle | ARCANA::CONNELLY | Don't try this at home, kids! | Wed Oct 19 1994 13:00 | 7 |
|
re: .14
I suspect all Wall St. will notice is that the revenue went up. (And that
the loss decreased slightly.)
- paul
|
| 3451.16 | Number of non-regular employees ? | ENQUE::TAMER | | Wed Oct 19 1994 13:06 | 10 |
| How come the report does not show the number of non-regular
employees for the first time ?
The regular employee count went down by 4,000 but what about the
number of non-regular employees. Did it go up ?
Alpha AXP sales and PC sales of approx. $314M and $363M, respectively,
are disappointing.
|
| 3451.17 | Wall Street seems ok | BAHTAT::HILTON | Beer...now there's a temporary solution | Wed Oct 19 1994 13:11 | 5 |
| Wall Street doesn't seem to mind too much:
DEC 30 1/8, change +0 3/4; DJIA unknown, change unknown at 10:00.
Report entered at Wed Oct 19 10:03:08 1994.
|
| 3451.18 | RAISES FOR ALL | ANNECY::HOTCHKISS | | Wed Oct 19 1994 13:48 | 15 |
| re .7
I know what you're thinking.You're thinking that the 83% of the
employees left are now sharing 96% of the salary paid last
year.Right?Which kind of implies that everybody except YOU got a pay
rise of 16% over last year OR that a smaller number of people got a
higher raise or that one person got an indecently high payoff(how's it
going Ed?)
Let me tell you the truth
Have you noticed that a lot of people have been avoiding you or changing
the subject when pay is mentioned?Or that some colleagues are rather
rash when it comes to offering to buy coffee?People paying their credit
card bills on time or walking round with a jingling sound coming from
their nether regions?
Yep-you guessed it and you didn't
;~)
|
| 3451.19 | | HAAG::HAAG | Rode hard. Put up wet. | Wed Oct 19 1994 13:56 | 2 |
| putting all the rhetoric aside, there is very little to be optimistic
about in the results.
|
| 3451.20 | not so sure | MSE1::PCOTE | Herculean efforts in progress | Wed Oct 19 1994 13:59 | 4 |
|
rep .-1, Wall Street sees something positive. Stock up 1-1/4 at
30 5/8.
|
| 3451.21 | Depends who goes and who stays | PEKING::RICKETTSK | It sucks - change it! | Wed Oct 19 1994 14:14 | 16 |
| >>83% of the employees left are now sharing 96% of the salary paid last
year.
This only fails to make sense if you assume that the pain of TFSO's
has been evenly spread across the range of salaries. If all those
TFSO'd were i.c.'s on lowish five-figure salaries, while all the
people on six-figure salaries are still here, it makes perfect sense
that throwing out a lot of people has made only limited impact on the
salary bill.
Yes, I know some senior people have gone; but there seem to be almost
daily reports of new VP's being appointed to make up the numbers.
Additionally, does the salary bill include the increased number of
contractors? Or are their salaries totted up separately?
Ken
|
| 3451.22 | SIMPLY THE BEST | WOTVAX::GALLEYR | Russell Galley | Wed Oct 19 1994 14:20 | 10 |
| THE DSO MAY BE 83 DAYS WORLDWIDE HOWEVER THE CREDIT FUNCTION IN
WARRINGTON,ENGLAND HAD A DSO OF 29 DAYS. MAYBE THE CREDIT WORLD OF
DIGITAL SHOULD COME AND SIT WITH US PROFESSIONALS AT WARRINGTON.
|
| 3451.23 | Congratulations | GRANMA::JWOOD | | Wed Oct 19 1994 14:24 | 1 |
| re. -1) That's more like it !!!
|
| 3451.24 | | VIVALD::SHEA | | Wed Oct 19 1994 14:43 | 9 |
| I worry about the "one-time benefit associated with the adoption of a change in
accounting principle for fair market value accounting for certain investments
in dbt and equity securities". Does this mean that if the same accounting
procedures from last quarter were used, we would have lost $65M more? That
would be $196M!
I am encouraged by the increased AXP sales. As we get more application on OVMS
AXP and OSF/1, I think the accelleration in these sales will continue, and we
will soon be on a growth curve in both revenue and profit.
|
| 3451.25 | More To Go. | CAPO::WANTJE_RA | | Wed Oct 19 1994 14:53 | 7 |
| re: .14
Yes, we were.
And still are.
rww
|
| 3451.26 | gettin' on the bandwagon | NPSS::BRANAM | Steve, Network Product Support | Wed Oct 19 1994 15:30 | 4 |
| RE .21 - I would like to apply for one of those six-figure salaries. Anyone know
where I sign up?
;^)
|
| 3451.27 | Make sure your comparisons are valid | NOVA::SWONGER | DBS Software Quality Engineering | Wed Oct 19 1994 15:36 | 13 |
| >>83% of the employees left are now sharing 96% of the salary paid last
year.
This, and other of the questions and comments about the results and
employee population, are mixing apples and oranges.
The employee population is a snapshot as of the last day of the
quarter, but things like SG&A expenses represent totals for the
quarter. The full effect (in the costs column) of downsizing can't
be felt until the quarter AFTER people leave, because some of the
people who left departed in the last weeks of the quarter.
Roy
|
| 3451.28 | more good news please | BROUGH::DAVIES | Not Also, but ONLY | Wed Oct 19 1994 16:15 | 14 |
| The DSO in the part of the company where I work is effectively 0. We get paid
upfront in US$ ! and claim the money as soon as we invoice them. So along
with places like Warrington (mines a pint of boddies) a difference is being
made. Keep it up people. The more GOOD news we can spread around the better
for general morale in the company.
My 2c is that the comany is chanigng radically. The old ways of doing business
have gone forever. Just look at the % of business now being done via indirect
channels. The more that goes up, the more the cost of sales go down. Naturally,
there is an effect of the profit margins on goods being sold via indirect
channels. But in the long run, is it all to the good.
Stephen Davies
|
| 3451.29 | For the first time I'm HAPPY I did ESPP !!! | MLNAD0::ANTONANGELI | The Customer is always left! | Wed Oct 19 1994 16:42 | 3 |
| DEC 31 5/8, change +2 1/4; DJIA unknown, change unknown at 13:33.
Report entered at Wed Oct 19 13:31:25 1994.
|
| 3451.30 | | TOKNOW::METCALFE | Eschew Obfuscatory Monikers | Wed Oct 19 1994 17:21 | 3 |
| > Title: For the first time I'm HAPPY I did ESPP !!!
...unless you're outsourced or TFSOed before December 1. 8^o
|
| 3451.31 | Missed Something Here. | CAPO::WANTJE_RA | | Wed Oct 19 1994 17:34 | 10 |
| re .28
I must have missed something.
Indirect sales went from 41% to 57% over hte past year.
Cost of Sales went from 0.98B$ to 1.23B$ over the past year.
What did I miss?
rww
|
| 3451.32 | Creative Accounting 201, perhaps? | POBOX::CORSON | Higher, and a bit more to the right | Wed Oct 19 1994 17:38 | 2 |
|
|
| 3451.33 | Laws of relativity need not apply. | GMT1::TEEKEMA | Living in Virtual Fantasy. | Wed Oct 19 1994 17:43 | 7 |
|
That is the $1M question of the day.
Best explanation I heard was the increase in $$ spent
on advertising and possible incentives to our channel partners.
Makes perfect sense to me.........NOT.
|
| 3451.34 | Pass/Fail | CAPO::WANTJE_RA | | Wed Oct 19 1994 17:51 | 4 |
| re: .32 Well, as I remember it was pass/fail.
rww
|
| 3451.35 | Pin | GRANMA::JWOOD | | Wed Oct 19 1994 17:56 | 14 |
| I thought cost of sales was the amount that it cost you to source,
build, and deliver what you sold. These costs have risen due to the
change in product mix from higher ticket items with more profit to
higher volume products with lower profit.
SG&A went down which is the amount you pay to market and sell the product.
These costs went down due to TFSOs and more sales through indirect
channels.
Can we get a reading from some one who knows for sure?
Thanks,
JW
|
| 3451.36 | Clues, Anybody? | CAPO::WANTJE_RA | | Wed Oct 19 1994 17:57 | 9 |
| In all seriousness, these numbers (Cost of Sales versus % done by
Indirect Sales) do *not* make sense to me.
Greyhawk, I believe you have some experience here [ (;} ] and quite
often have good insigt. Any clues for the clueless?
Actually, anybody who can help explain...
rww
|
| 3451.37 | Sales cost is in SG&A | STOWOA::ODIAZ | Octavio, MCS/SPS | Wed Oct 19 1994 17:58 | 8 |
| Re: <<< Note 3451.31 by CAPO::WANTJE_RA >>>
As discussed every quarter:
"Cost of Product Sales" = cost of goods sold /= cost of Sales
Cost of sales is part of SG&A
|
| 3451.38 | But... | CAPO::WANTJE_RA | | Wed Oct 19 1994 18:11 | 9 |
| Thank you. Cost of Product Sales reflects the volume that is sold.
The more you sell the higher the figure, all things being equal.
All right. Let me put it this way:
With the reduction in the headcount and the increase of indirect sales
over the past year, is a 4% (or 12%) reduction in SG&A considered good?
rww
|
| 3451.39 | Almost, but a little short... | POBOX::CORSON | Higher, and a bit more to the right | Wed Oct 19 1994 18:46 | 16 |
|
Not really .-1. As a business with margins dropping (6.2 margin
points from Q1FY94 to Q!FY95), you want to drop SG&A inside that
number. So SG&A should actually decline, in a more perfect world, by
17-18% over the same period. We were short obviously.
Another slice is revenue growth minus sales backlog. Since we, nor
anybody else for that matter, report sales backlog this is harder to
compute. My rough numbers show that actual revenue growth for Q1FY95
was actually under Q1FY94 when the backlog is factored out (since that
is sold in the quarter previously, but not shipped and invoiced). We
still have a way to go in any case. Q2 will be the tale of the tape.
Stay tuned.
And Tex, please send me another order of Prozac before I have
toomuch fun.
the Greyhawk
|
| 3451.40 | I've got only one comment ......... | ELMAGO::JMORALES | | Wed Oct 19 1994 19:06 | 6 |
| I'm glad that I'm OUT OF HERE !
The rest, please be careful, have your contigency plan;
namely, resume on the street, own business, money saved or
whatever, this is going down fast !!!!!!!!!!!!!!!!!!!!
|
| 3451.41 | And then there was..... | AIMHI::JACKSON | | Wed Oct 19 1994 19:44 | 12 |
|
RE: .40
Employee Population: Regular.......................73,800
- 1
------
73,799
;-)
|
| 3451.42 | | MROA::SRINIVASAN | | Wed Oct 19 1994 20:05 | 8 |
|
>DEC 29 7/8, change +0 1/2; DJIA unknown, change unknown at 16:30.
>Report entered at Wed Oct 19 16:46:23 1994.
What Happened ? Some one down graded the stock or analysts are now
interpreting the Q4 report correctly!
|
| 3451.43 | Normal profit taking | TLE::REAGAN | All of this chaos makes perfect sense | Wed Oct 19 1994 20:10 | 3 |
| No, I bet that someone just took their cash and ran...
-John
|
| 3451.44 | from http://www.secapl.com/cgi-bin/qsx | NETRIX::thomas | The Code Warrior | Wed Oct 19 1994 21:02 | 6 |
| Symbol : DEC Exchange : New York Stock Exchange
Description : DIGITAL EQUIPMENT CORP
Current Price : 31.625 Volume : 5150900
$ Change : 2.250 % Change : 7.66
52 Week High : 38.625 52 Week Low : 18.250
|
| 3451.45 | | QUARK::LIONEL | Free advice is worth every cent | Wed Oct 19 1994 21:30 | 4 |
| There's likely to have been an awful lot of programmed trading when
the stock hit 30.
Steve
|
| 3451.46 | Who else didn't get the 16% raise? | ANNECY::HOTCHKISS | | Thu Oct 20 1994 07:09 | 13 |
| re .27
I forgot to mention that all of us who received the 16% raise were
sworn to secrecy-I reckon you must have been another of the unlucky
ones who didn't get the 16%..
Seriously though,I know I am mixing apples and pears but a little humour
is needed these days.There are raises in Europe at least and there are
stock options too from what I hear,although it could be malicious
rumour.The only thing I can certainly witness is that the peer group I
had two years ago was very large and has almost completely dissappeared
to competition with higher salaries(why I am I left,you ask?What this
space).
So,I do believe that an explanation is needed from somebody
senior BEFORE the bloodletting in Q2.
|
| 3451.47 | accounting 301 please | GVPROD::DOIGTE::Chisholm | | Thu Oct 20 1994 07:37 | 6 |
| Can anybody explain why 'cost of product sales' went up by $107m, and
'cost of sales' went up by $254m ? This seems to dwarf the drop of
$36m in SG&A. I can't see how these costs would be associated with people,
so what can it be ?
|
| 3451.48 | | NOVA::FISHER | Tay-unned, rey-usted, rey-ady | Thu Oct 20 1994 07:45 | 8 |
| heard on CNN this morning [Thursday]
"COMPAQ ... . Other leading computer companies have yet to announce
their quarterly reqults."
I guess DEC just does not lead any more. :-(
ed
|
| 3451.49 | | HLFS00::CHARLES | chasing running applications | Thu Oct 20 1994 07:55 | 5 |
| >There are raises in Europe
Where in Europe?? I may want to relocate.
Payfreezed in Holland
|
| 3451.50 | maybe where the closing 29 figure came from | HNDYMN::MCCARTHY | I'm still not ready | Thu Oct 20 1994 08:49 | 6 |
| last night channel 11 (NH) was running what ever it's nightly business report
program is and it had the +1/2 figure on the screen but the guy said "oh that's
a wrong figure for Digital, the computer must have picked up yesterday's quote"
and then went on and gave the 31 and change number.
bjm
|
| 3451.51 | The Proof won't fit in the Margin | HLDE01::VUURBOOM_R | Roelof Vuurboom @ APD, DTN 829 4066 | Thu Oct 20 1994 08:56 | 9 |
| Re. .47
As I understand it Cost of Product Sales includes all the costs
of stuff you have to make or buy. Sales - Cost of Product Sales
more or less equals margin (remember this is Acct 301 :-)
We're selling more stuff (hence buying and making more stuff)
so the Cost of Product Sales goes up. But our margins are lower
so our Sales don't go up correspondingly.
|
| 3451.52 | What's the price? | PENUTS::PBAXTER | | Thu Oct 20 1994 10:17 | 15 |
| Does any know what happened to the stock price near the end of the
day? All sorts of mixed up numbers from different sources.
Was there a momentary selloff? Maybe that big investor who bought in
a few weeks ago. Maybe there was a glich(sp) in the wall street
reporting mechanism because it affected several different quotations?
The quote program said 29 7/8 (+1/2) @16:00 yesterday
The DEC IS touchtone system said 31.50 @4pm yesterday
This Morning's Globe says 31.25 (+1 7/8)
This Mornings Public Broadcasting System(TV) says 29 7/8
The quote program this morming said 31.50 @10:45
(but it's only 7:10 now)
Well I'll wait for the opening bell with one eye closed and fingers
crossed to find out.
|
| 3451.53 | The Price is Right | PENUTS::PBAXTER | | Thu Oct 20 1994 10:28 | 8 |
| It is now 7:10am EST on Thursday morning Oct 20th ....
Now if this quote program really works this this it
could come in handy some day (Like 2 days ago) !
Sort of like that "Back to the Future" sports notebook
-----------------------------------------------------------------
DEC 31 1/4, change +1 7/8; DJIA 3936.04, change +18.50 at 10:34.
Report entered at Thu Oct 20 10:34:48 1994
---------------------------------------------------------------
|
| 3451.54 | | ELGIN::RASOOLM | The computer in front is an ALPHA | Thu Oct 20 1994 10:52 | 15 |
|
As I see it......
What nobody seems to have latched onto here is that revenues are GOING
UP! This is the best bit of the results. As long as that continues, the
rest will follow.
Correct me if I am wrong, but DIGITAL will not go under as long as
revenues are on the uptrend.
Now, just get those costs in order and we are away.
Max.
|
| 3451.55 | To clarify... | PARVAX::SCHUSTAK | Digital...AndProudOfIt! | Thu Oct 20 1994 10:53 | 14 |
| Cost of product sales = Raw materials plus direct labor plus other mfg
cost
Cost of sales = the above plus the direct costs of delivering services
The above two figures, when compared with the related revenue figures,
result in the gross margin %, which as was stated, is declining (but
actually is very comparable to the gross margin % reported by others
including CPQ).
SG&A does NOT include the above, and the decline by ~4% is very good
news, and indicative of the increasing volumes through channels.
Steve_an_accounting_grad_whos_never_ackshually_been_an_accountant
|
| 3451.56 | placement is everything | ASABET::SILVERBERG | My Other O/S is UNIX | Thu Oct 20 1994 11:14 | 8 |
| Just an interesting observation.....
The Wall Streeet Journal article on Digital's results is in the
TECHNOLOGY & HEALTH section of the paper, while our competitor's
results are in the business section. The article is next to the
seafood restaurant's low-fat meals advantage article.
Mark
|
| 3451.58 | Postretirement benefits? | BROKE::GUROS | | Thu Oct 20 1994 11:34 | 4 |
| Postretirement & Other Postemployment Benefits...... 1,246,898,000
--------------
I'm confused, what benefits do we pay after retirement?
|
| 3451.59 | 5,000 more headcount | ASABET::SILVERBERG | My Other O/S is UNIX | Thu Oct 20 1994 11:49 | 7 |
| The WSJ article stated that we have 5,000 temp headcount in addition to
the 73,800 permanent. Stated the company will no longer publish temp
or non-permanent headcount as the higher number tended to show revenue
per employee poor relative to competitors.
Mark
|
| 3451.60 | | QUARK::LIONEL | Free advice is worth every cent | Thu Oct 20 1994 13:27 | 5 |
| I was astounded to see that the Boston Globe's article on the Q1 results was
on the positive side. This is the same paper that can't print the name
of the company without adding "troubled".
Steve
|
| 3451.61 | On the sunny side of the street | ANGLIN::BJAMES | I feel the need, the need for SPEED | Thu Oct 20 1994 14:29 | 9 |
| re .58
The postretirement and post employment benefits figure is off the
balance sheet and has to do with money to be used for paying for and
funding pensions and other retirement related expenses (like health
care for example) for all the folks who are right now swinging a golf
club, traveling or walking a beach.
|
| 3451.62 | DSO definition | BIS1::LXP206::Wilms | | Thu Oct 20 1994 15:44 | 16 |
| On DSO
DSO = 90 * (Unpayed_Invoices/Quarter_NOR)
Hence :
Ship nothing month 1 & 2
Ship n$'s month 3.
Standard payment conditions : 30 days net as from invoice.
Result : DSO = 90 days
|
| 3451.63 | Quote not automatic | NCMAIL::BUCKLEY | ski fast,take chances,die young | Thu Oct 20 1994 18:55 | 15 |
| regarding several comments on the QUOTE program.
This is not an automatic program and ther is no one in charge of updating
the stock prices in quote. The program is a tool that can be updated by
anyone that happens to determine the current price of the stock. So if
someone gets bad data and sends it to quote, everyone sees bad answers.
It looks like some computers (Nightly Business Report which gets its data
from Reuters) had bad data in them showing the previous days quote and
someone got this data and entered it into quote which gave the 29 and change
number at 16:30.
If the vice president's position of stock updater is open, I'll take it.
|
| 3451.64 | | QUARK::LIONEL | Free advice is worth every cent | Thu Oct 20 1994 19:12 | 3 |
| Note also that this morning's VNS had us closing at 21-1/4 - oops!
Steve
|
| 3451.65 | Node for Stock Quote Program | LJSRV2::HILL | | Thu Oct 20 1994 19:22 | 7 |
| What node is the quote program on these days?
It hasn't been available on the old node (I can't remember the name.)
for some time.
Thanks
|
| 3451.66 | DIODE:: | KAOFS::R_DAVEY | Robin Davey CSC/CTH dtn 772-7220 | Thu Oct 20 1994 19:30 | 1 |
|
|
| 3451.67 | who did this? | MBALDY::LANGSTON | our middle name is 'Equipment' | Thu Oct 20 1994 19:45 | 4 |
| The WWW server at http://www.ai.mit.edu/stocks/graph?DEC ,
at the MIT AI lab has the closing price as 29.875, too.
Bruce
|
| 3451.68 | I'm taking action as we speak, sotospeak | POBOX::CORSON | Higher, and a bit more to the right | Thu Oct 20 1994 20:09 | 7 |
|
Heck, stop talking about it and sell the damn stuff. This is
probably the HIGH for the year, maybe the rest of the decade, who
knows? But profits is profits, and as granddaddy said, "No one ever
went broke making a profit."
the Greyhawk
|
| 3451.69 | might need a new quote_v0.exe | HNDYMN::MCCARTHY | I'm still not ready | Thu Oct 20 1994 20:21 | 11 |
| re: .65:
Depending on what you are using to access the internal quote
information (not the www info) you may need to get a new executiable image.
The quote_v0.exe that has been around for years had hard coded in the node
number for diode so making sure that your network database is correct won't do
you any good.
If you are using one of the DECwindows versions I think they all have
some method of changing the node to which the request is made (decw_quote
does).
bjm
|
| 3451.70 | | BHAJEE::JAERVINEN | Ora, the Old Rural Amateur | Fri Oct 21 1994 07:46 | 7 |
| re .49: In Germany, at least.
As Digital has signed a contract with the trade union (IG Metall),
Digital also pays whatever raises the union manages to negotiate.
This year, I think it was 3%. The union is talking of 6% for the next
year.
|
| 3451.71 | A little stock market manipulation? | PENUTS::PBAXTER | | Fri Oct 21 1994 10:13 | 3 |
| Maybe the national stock agencies use the 'QUOTE' program as their
source. Want to see the market jump a little !!
Now how does one update the 'QUOTE' information?
|
| 3451.72 | re .64: You get what you pay for ;-) | UHUH::TALCOTT | | Fri Oct 21 1994 10:46 | 3 |
|
Trace
|
| 3451.73 | quote_v0 info | 35857::BUCKLEY | ski fast,take chances,die young | Fri Oct 21 1994 12:14 | 46 |
| > Maybe the national stock agencies use the 'QUOTE' program as their
> source. Want to see the market jump a little !!
Not Funny... A few years ago the NYSE was closed on april fools day and some
people "had fun" manipulating the price in quote. Some people got very mad
and called security. Quote ALMOST got killed and its author (who wrote it
in his spare time as a favor to the Digital community) got his hand slapped
even though he had nothing to do with the data being entered [I believe he had
taken the day as a skiing vacation day]. Quote is a handy thing to have,
DON'T ABUSE IT or you WILL lose it...
> Now how does one update the 'QUOTE' information?
If you give a parameter of w to the command procedure it will ask questions
and update the info on diode::.
(It took me three tries to get it right this am [note the first price]...)
Example:
$@quote_v0 w
DEC 0 5/8, change +0 1/4; DJIA 3911.15, change -24.89 at 8:31.
Report entered at Fri Oct 21 09:04:38 1994.
Is your quote for a time later than 8:31? y
Enter "H" for help.
What is the value of a share of Digital stock? 31 1/2
How much has it changed since the opening? 1/4
What is the Dow-Jones Industrial Average? 3911.15
How much has it changed since the opening? -24.89
What time is this information for? 8:32
DEC 31 1/2, change +0 1/4; DJIA 3911.15, change -24.89 at 8:32.
Report entered at Fri Oct 21 09:05:45 1994.
Are you sure you want to replace the previous information with yours? y
The quotation is being updated.
DEC 31 1/2, change +0 1/4; DJIA 3911.15, change -24.89 at 8:32.
Report entered at Fri Oct 21 09:05:45 1994.
Dan Buckley, CT dc
P.S. The code uses a neat trick to avoid burying the node diode:: (a microvax
last time I asked) with network traffic. When you attempt to attach to Diode::
from the quote_v0 program, your network connection is REFUSED and the data from
diode is returned as a part of the reason for refusal data. This data is parsed
by the quote_v0 program to print out the two line quotation. When the original
code used full DECNET handshaking, a few hundred connects would bury diode.
With the "trick" diode is able to handle thousands of connects and do real work
at the same time.
|
| 3451.74 | 60-90 days in Europe | UTROP1::HOEFSMIT_M | Old sins cast long shadows | Sun Oct 23 1994 21:22 | 9 |
|
Hello Mark,
where did you get the idea that the European T&C's say 60 - 90 days payment.
Maybe for products, definitly not for services.
Ciao,
Michiel
|