| Title: | The Digital way of working |
| Moderator: | QUARK::LIONEL ON |
| Created: | Fri Feb 14 1986 |
| Last Modified: | Fri Jun 06 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 5321 |
| Total number of notes: | 139771 |
Post them here,the suspense is killing me..
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 2723.1 | Another day's wait | MR4DEC::HARRIS | Tue Oct 19 1993 15:17 | 3 | |
Release is October 20 at 7:00 a.m. EDT.
Mac
| |||||
| 2723.2 | Q1 Results | KOALA::BOUCHARD | The enemy is wise | Wed Oct 20 1993 11:11 | 209 |
Digital reports first quarter operating results
Digital today reported results for its first quarter, which ended
Oct. 2, 1993.
For the quarter, the corporation reported a net loss of
$83,185,000 or 62 cents per share, compared with a loss of
$260,546,000 or $2.04 per share for the first quarter a year ago. The
loss for the first quarter of fiscal 1994 includes a one-time benefit
of $20,042,000, or 14 cents per share, related to the adoption of a
change in accounting principle for income taxes. For the quarter,
Digital reported total operating revenues of $3,014,948,000, down from
$3,314,299,000 for the comparable quarter a year ago.
Digital President and Chief Executive Officer Bob Palmer
commented, "We reduced the operating loss in the quarter by more than
$162,000,000 compared with the first quarter of last year through
continued focus on cost controls. Even so, we were disappointed by
the revenue declines from last year. The revenue decline in the
seasonally soft September quarter was attributable primarily to continued
weakness in Europe -- Germany and Italy in particular -- as well as
negative effects of foreign currency fluctuations. A slight decline in
the U.S. also hurt us. Our operations in Asia continued to show good
growth, both in products and services, but not enough to offset declines
in other areas."
"Our focus for this fiscal year remains unchanged," Bob added.
"We are committed to improving profitability while successfully growing
the Alpha AXP business."
Bill Steul, chief financial officer, said, "For the fourth
consecutive quarter we showed improving operating results over the
comparable period of the prior year, driven by a strong emphasis on
cost controls and improved efficiency. The effects of the company's
restructuring program are on schedule. As a result, research and
engineering spending declined 22% or $90,760,000 and selling, general
and administrative spending was down 23%, or $258,980,000 versus the
comparable quarter a year ago.
"Product gross margins declined five points from last year due
primarily to the revenue decline and a continued shift in revenue mix
to lower priced, lower margin products," Bill continued. "While we
achieved double-digit growth in both dollars and units in personal
computers and in our UNIX workstations businesses, our competitive
pricing for PC's and Alpha AXP systems is contributing to lower margins.
Service gross margins improved slightly compared with the first quarter
of last year."
Ed Lucente, vice president, Worldwide Sales and Marketing, noted,
"We have several programs taking advantage of our product strengths
which are focused on accelerating our growth in key areas. We have
initiated targeted programs aimed at selling open client/server products
such as workstations, servers and networking products.
"Just one week ago, nearly 3,000 chief information officers and
executives from our major customers around the world attended announcement
events to learn about Digital's open client/server strategy," he said.
"The company's initiative included more than 200 new products and
services, major enhancements to the OSF/1 and OpenVMS operating systems,
new Alpha AXP and VAX systems all very competitively priced. We also
announced symmetric multiprocessing under UNIX, integration software
products such as LinkWorks and Tuxedo, and industry leading network
management software. All of these offerings enable customers to easily
move to open client/server computing. Customer reaction was very positive
and we expect these capabilities to open up many new opportunities for
our Alpha AXP systems," he said.
________
UNIX and Tuxedo are registered trademarks of UNIX System Laboratories,
Inc. OSF/1 is a registered trademark of Open Software Foundation, Inc.
OPERATING RESULTS FOR THE FIRST QUARTER ENDED:
October 2, 1993 September 26, 1992
PRODUCT SALES $ 1,557,004,000 $ 1,767,821,000
SERVICE & OTHER REVENUES 1,457,944,000 1,546,478,000
TOTAL OPERATING REVENUES 3,0l4,948,000 3,314,299,000
COST OF PRODUCT SALES 981,4l5,000 1,019,957,000
SERVICE EXPENSE AND COST
OF OTHER REVENUES 943,877,000 1,017,650,000
TOTAL COST OF SALES 1,925,292,000 2,037,607,000
GROSS MARGIN 36.1% 38.5%
RESEARCH & ENGINEERING 3l4,7l7,000 405,477,000
SELLING
GENERAL & ADMINISTRATIVE 872,207,000 1,131,187,000
OPERATING LOSS (97,268,000) (259,972,000)
OPERATING MARGIN (3.2%) (7.8)%
INTEREST INCOME 17,213,000 13,216,000
INTEREST EXPENSE 19,636,000 3,790,000
LOSS BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE (99,691,000) (250,546,000)
PRE-TAX MARGIN (3.3%) (7.6)%
INCOME TAXES 3,536,000 10,000,000
EFFECTIVE TAX RATE 3.5% 4.0%
LOSS BEFORE CUMULATIVE
EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE (103,227,000) (260,546,000)
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE,
NET OF TAX (20,042,000) 0
NET LOSS ( 83,185,000) (260,546,000)
LOSS PER SHARE
BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE $ (0.76) $ (2.04)
EARNINGS PER SHARE ON CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE 0.14 0
NET LOSS PER SHARE $ (0.62) $ (2.04)
AVERAGE NUMBER OF SHARES
OUTSTANDING 135,010,377 128,001,937
SELECTED BALANCE SHEET/CASH FLOW DATA - Q1 FY94
BALANCE SHEET:
CASH & CASH EQUIVALENTS........................ $ 1,273,830,000
ACCOUNTS RECEIVABLE, NET....................... 2,858,832,000
A/R DAYS SALES OUTSTANDING..................... 85 days
INVENTORIES: RAW MATERIALS.......$ 416,384,000
WORK IN PROCESS...... 593,833,000
FINISHED GOODS........910,606,000
TOTAL..................... 1,920,823,000
PREPAID EXPENSES & DEFERRED INCOME TAXES..... 465,822,000
TOTAL CURRENT ASSETS......................... 6,519,307,000
NET PROPERTY, PLANT & EQUIPMENT.............. 3,174,490,000
OTHER ASSETS, NET............................ 931,806,000
TOTAL ASSETS................................. 10,625,603,000
BANK LOANS AND CURRENT PORTION OF LTD........ 19,782,000
TOTAL CURRENT LIABILITIES.................... 3,607,159,000
NONCURRENT DEFERRED INCOME TAXES............. 26,369,000
LONG-TERM DEBT............................... 1,018,354,000
POSTRETIREMENT BENEFITS...................... 1,153,854,000
TOTAL LIABILITIES............................ 5,805,736,000
STOCKHOLDERS' EQUITY......................... 4,819,867,000
BOOK VALUE PER SHARE......................... $ 35.68
CASH FLOW:
CASH FLOWS FROM OPERATING ACTIVITIES, (247,034,000)
INCLUDING DEPREC. & AMORT. OF
......174,560,000
CASH FLOWS FROM INVESTING ACTIVITIES, (133,167,000)
INCLUDING INVESTMENTS IN PP&E OF.. (167,001,000)
CASH FLOWS FROM FINANCING ACTIVITIES......... 10,836,000
NET DECREASE IN CASH AND CASH EQUIVALENTS.... (369,365,000)
NON U.S. REVENUES - QTR...................... 1,810,459,000
OR 60 %
EMPLOYEE POPULATION: REGULAR................ 88,800
OTHER.................. 4,400
FOR DIGITAL INTERNAL USE ONLY
| |||||
| 2723.3 | better than I expected | CVG::THOMPSON | Who will rid me of this meddlesome priest? | Wed Oct 20 1993 11:53 | 17 |
The earnings number wasn't as bad as any of the rumors I'd heard so
I guess that's good. Not so good is revenue being down. I have
believed for a long time that revenue would drop as the employee
count dropped. I was hoping to be wrong. But you can't keep cutting
sales people and sales support people and expect sales to go up unless
you also make major system improvements. You also can't keep cutting
R&D and expect to keep up with the leading edge.
I'm assuming that EMPLOYEE POPULATION: OTHER means temps and
contractors. I thought that sort of thing was being cut out.
Can anyone explain in regular English what "CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE" means?
Alfred
| |||||
| 2723.4 | How many 1X benefits do they get?! | SAFARI::SCHILTON | When they said sit down,I stood up | Wed Oct 20 1993 12:08 | 7 |
The loss was "really" $103M .. lessened by a "one-time tax benefit"
(I think that's the term they used) of $20M.
This also occured in Q4 ... and that's the only reason we had a $9M
profit.
| |||||
| 2723.5 | Accounting | KOALA::BOUCHARD | The enemy is wise | Wed Oct 20 1993 12:09 | 9 |
The 'accounting' change is just bookkeeping. Digital has adopted some
new accounting policies which change how certain things are categorized
on the books. These accounting changes are/will be adopted throughout
the US business world. In Digital's case the end result was that
Digital's 'paper' worth increased by $20M. But this had no affect on
cash-flow (i.e. we don't have an extra $20M because of this).
| |||||
| 2723.6 | Dissapointed | ANNECY::HOTCHKISS | Wed Oct 20 1993 12:32 | 10 | |
DSO at 85 days is bad.Product margin is down five points but services is
up.How come we made 17m$ interest and paid 19m$?I would be most worried
about the pronouncements rather than the figures-I mean WHO is going to
either invest in or mainly buy from a company whose sole stated
strategy relies on a processor architecture(brilliant though it is)but
is rich enough to reorganise every six months?
A worried shareHOLDER
------
| |||||
| 2723.7 | "Other" Employees?? | LACV01::BAUMEISTER | Wed Oct 20 1993 14:05 | 5 | |
I'm curious too....what does OTHER mean under EMPLOYEES of 4,400. I
don't think we have that many temps/contractors but I could be wrong.
C.
| |||||
| 2723.8 | Is this bad or what ????????? | ELMAGO::JMORALES | Wed Oct 20 1993 14:38 | 34 | |
Here is what the numbers say:
Operating Revenue:
------------------
Compared to Qtr. 4 sales have decreased by $ 899M or a whooping
29.81% (WHAT A BLOODBATH !!!!!!!!!!!!!!!!!)
Cost of Product Sales:
----------------------
Compared to Qtr. 4 we have slightly decrease it by 0.1%.
Service Expense:
----------------
Compared to Qtr. 4 it has increased by 4.21% - NOT GOOD !!!!!
Gross Margin:
-------------
Compared to Qtr. 4 is has decresed by 4.2% (probably related to
the increase in Service Expense)
Selling G&A Expenses:
---------------------
Compared to Qtr. 4 they have increased by 1.11% - NOT GOOD.
Sales Days Outstanding:
-----------------------
Compared to Qtr. 4 they have increased by 16 days or an average of
$ 33.6M per outstanding day. (What a killing !!!!)
Employee Population:
--------------------
Compared to Qtr. 4 slight decrease of 1,000.
| |||||
| 2723.9 | Apples to Apples or Pears to Grapes... | LOCH::SOJDA | Wed Oct 20 1993 15:10 | 6 | |
Given that Digital is now reporting regular and other employees
separately, does anyone know if the "other" category was included in
the previously reported number?
Larry
| |||||
| 2723.10 | compare q1 to q1 | BOOKS::HAMILTON | All models are false; some are useful - Dr. G. Box | Wed Oct 20 1993 15:24 | 13 |
Re:.8
It does no good to compare Q1 numbers to Q4 numbers. That
analysis does not take into account seasonal issues; compare
Q1 numbers to Q1 last year for validity. Now, a 300M decrease
in revenue between Q1 last year and Q1 this year should give
us plenty enough to worry about, without making the comparisons
look as *bad* as possible.
Glenn
| |||||
| 2723.11 | Interest expense is from bonds | KOALA::BOUCHARD | The enemy is wise | Wed Oct 20 1993 15:43 | 6 |
re: .6
We paid $19M in interest primarily because Digital has sold $1B in
various bonds in the near-past. I.e. Digital has borrowed $1B from
investors, and we'll be paying back interest (and, eventually,
principal) for many years to come...
| |||||
| 2723.12 | MIMS::PARISE_M | Profitability?...fawgeddaBOW'dit! | Wed Oct 20 1993 15:57 | 6 | |
re: -1
Yet this was applauded by many as sound financial management!
Not something I would have preferred to do.
But what do I know?
| |||||
| 2723.13 | HEDRON::DAVEB | anti-EMM! anti-EMM! I hate expanded memory!- Dorothy | Wed Oct 20 1993 17:21 | 6 | |
re: temps/contract workers ASO has hundreds of manufacturer's that are temps. PKO has loads of instructors that are temps, I expect this is true at many sites. dave | |||||
| 2723.14 | Bankrupcy FY'94. | ELMAGO::JMORALES | Wed Oct 20 1993 17:32 | 12 | |
- Compare Qtr. 1 FY'94 with Qtr. 1 FY'93
--------------------------------------
This was a suggestion, you can do that if you want.
However I will keep on saying that we MUST demostrate a trend.
Clearly with the results in Qtr. 1 the trend leans toward
bankrupcy. I'm not saying this, the numbers tell the storry.
We are going to lay-off 10K to 15K more, so that will leave the
'permanent' manpower headcount in the 70K's.
Sorry folks but the picture is black as the night and I do not have
a better color. "You can not hide the sky with one hand in front
of your eyes".
| |||||
| 2723.15 | Digital bonds | KOALA::BOUCHARD | The enemy is wise | Wed Oct 20 1993 18:48 | 13 |
re: .12
Digital is a large company that is constantly spending/receiving
enormous amounts of money. We have 1.3B or so in 'cash equivalents',
which is a lot to you and me but not to people running a $13B company.
If we hadn't sold $1B in bonds, we'd have $1B less in 'cash
equivalents' -- or $300M -- which is about 3 days worth of expenses...
I'm sure Digital would have been happier to have remained profitable
with tons of money in the bank, and never have to sell bonds, but given
that the company did need the money they picked a good time to raise it
-- bond yields were low, and Digital still have an excellent credit
rating when these bonds were sold.
| |||||
| 2723.16 | Quarterly comparison | MEMIT::SILVERBERG_M | Mark Silverberg MLO1-5/B98 | Thu Oct 21 1993 09:31 | 337 |
Here is a quarterly comparion developed by our Finance Manager...enjoy
DIGITAL EQUIPMENT CORPORATION
BALANCE SHEET HIGHLIGHTS
TOTAL
BOOK NO.
DSO LONG VALUE OF
ACCTS (DAYS TOTAL NET TOTAL TERM PER EMPLOYEES
CASH REC SALES INVEN PP&E ASSETS DEBT SHARE Includes
$B $B OUT) $B $B $B $B $ Acquistions
---- ----- ---- ----- ----- ------ ---- ----- ---------
Q1FY94 $1.3 $2.9 85 $1.9 $3.2 $10.6 $1.02 $35.68 93,200
Q4FY93 $1.6 $3.0 69 $1.8 $3.2 $11.0 $1.02 $36.19 94,200
Q3FY93 $1.6 $3.0 78 $1.8 $3.2 $10.9 $0.78 $35.75 98,100
Q2FY93 $1.4 $3.1 76 $1.8 $3.3 $11.0 $0.78 $35.96 102,100
Q1FY93 $0.9 $3.3 90 $1.8 $3.4 $10.7 $0.04 $36.59 108,500
Q4FY92 $1.3 $3.6 83 $1.6 $3.6 $11.3 $0.04 $38.58 113,800
Q1FY92 $2.1 $3.2 87 $1.7 $3.7 $11.9 $0.1 $61.37 115,300
Q4FY91 $1.9 $3.3 76 $1.6 $3.8 $12.0 $0.2 $61.18 121,000
Q1FY91 $1.6 $3.3 97 $1.7 $3.8 $11.5 $0.2 $67.01 123,500
Q4FY90 $2.0 $3.2 86 $1.5 $3.9 $11.7 $0.2 $66.76 124,000
Q1FY90 $1.8 $3.0 86 $1.7 $3.7 $11.0 $0.1 $67.21 125,500
DIGITAL EQUIPMENT CORPORATION
($M) Q1FY94 Q1FY93 DELTA % GROWTH
FAV(UNF)
PRODUCT SALES $1,557 $1,768 -$211 -12%
SERVICE & OTHER $1,458 $1,547 -$89 -6%
------ ------ ------ ------
OPERATING REVENUE $3,015 $3,314 -$299 -9%
PRODUCT COST $981 $1,020 $39 -4%
SERVICE EXPENSE $944 $1,018 $74 -7%
------ ------ ------ ------
TOTAL COST OF SALES $1,925 $2,038 $112 -6%
PRODUCT GROSS MARGIN $576 $748 -$172 -23%
SERVICE MARGIN $514 $529 -$15 -3%
------ ------ ------ ------
GROSS MARGIN $1,090 $1,277 -$187 -15%
RESEARCH & ENGING $315 $406 $91 -22%
SELLG, GEN& ADMIN $872 $1,131 $259 -23%
RESTRUCTURE CHARGE $0 $0 $0
------ ------ ------ ------
OPERATING INCOME -$97 -$260 $163 -63%
INTEREST(INC)/EXP $2 -$9 -$12 -126%
------ ------ ------ ------
INCOME BEFORE TAXES -$100 -$251 $151 -60%
INCOME TAXES $4 $10 $6 -65%
ACCTG CHG; NET OF TAX -$20 $0 $20
------ ------ ------ ------
NET INCOME -$83 -$261 $177 -68%
====== ====== ====== ======
AVG SHARES OUT (M) 135 128 7.0 5%
NET LOSS PER SHARE -$0.62 -$2.04 $1.42 -70%
RATIOS: Q1FY94 Q1FY93 DELTA
PROD REV % OP REV 52% 53% -2%
SERV REV % OP REV 48% 47% 2%
PROD MARG % PROD REV 37% 42% -5%
SERV MARG % SERV REV 35% 34% 1%
RES & ENG % PROD REV 20% 23% 3%
RES & ENG % OP REV 10% 12% 2%
SELL,G& A % OP REV 29% 34% 5%
RESTRUCTG % OP REV 0% 0% 0%
OPER INC % OP REV -3% -8% 5%
INTEREST % OP REV 0% 0% 0%
TAXES % INCOME -4% -4% 0%
NET INCOME % OP REV -3% -8% 5%
DIGITAL EQUIPMENT CORPORATION
($M) Q1FY94 Q4FY93 DELTA % GROWTH
FAV(UNF)
PRODUCT SALES $1,557 $2,086 -$529 -25%
SERVICE & OTHER $1,458 $1,828 -$371 -20%
------ ------ ------ ------
OPERATING REVENUE $3,015 $3,914 -$899 -23%
PRODUCT COST $981 $1,278 $297 -23%
SERVICE EXPENSE $944 $1,060 $116 -11%
------ ------ ------ ------
TOTAL COST OF SALES $1,925 $2,338 $413 -18%
PRODUCT GROSS MARGIN $576 $808 -$232 -29%
SERVICE MARGIN $514 $768 -$254 -33%
------ ------ ------ ------
GROSS MARGIN $1,090 $1,576 -$486 -31%
RESEARCH & ENGING $315 $369 $55 -15%
SELLG, GEN& ADMIN $872 $1,088 $216 -20%
RESTRUCTURE CHARGE $0 $0 $0 NM
------ ------ ------ ------
OPERATING INCOME -$97 $118 -$216 -182%
INTEREST(INC)/EXP $2 -$2 -$4 NM
------ ------ ------ ------
INCOME BEFORE TAXES -$100 $120 -$220 -183%
INCOME TAXES $4 $7 $3 -49%
ACCTG CHG; NET OF TAX -$20 $0 $20
------ ------ ------ ------
NET INCOME -$83 $113 -$244 -173%
====== ====== ====== ======
AVG SHARES OUT (M) 135 133 1.5 1%
NET INC PER SHARE -$0.62 $0.85 -$1.47 -173%
RATIOS: Q1FY94 Q4FY93 DELTA
PROD REV % OP REV 52% 53% -2%
SERV REV % OP REV 48% 47% 2%
PROD MARG % PROD REV 37% 39% -2%
SERV MARG % SERV REV 35% 42% -7%
RES & ENG % PROD REV 20% 18% -3%
RES & ENG % OP REV 10% 9% -1%
SELL,G& A % OP REV 29% 28% -1%
RESTRUCTG % OP REV 0% 0% 0%
OPER INC % OP REV -3% 3% -6%
INTEREST % OP REV 0% 0% 0%
TAXES % INCOME -4% 6% 9%
NET INCOME % OP REV -3% 3% -6%
DIGITAL EQUIPMENT CORPORATION
Q1FY93 Q2FY93 Q3FY93 Q4FY93 | FY93
($M) ACTUAL ACTUAL ACTUAL ACTUAL | ACTUAL
|
PRODUCT SALES $1,768 $1,967 $1,767 $2,086 | $7,588
SERVICE & OTHER $1,547 $1,722 $1,686 $1,828 | $6,783
------ ------ ------ ------ | ------
OPERATING REVENUE $3,314 $3,689 $3,454 $3,914 | $14,371
|
PRODUCT COST $1,020 $1,117 $1,050 $1,278 | $4,464
SERVICE EXPENSE $1,018 $1,058 $1,031 $1,060 | $4,167
------ ------ ------ ------ | ------
TOTAL COST OF SALES $2,038 $2,175 $2,081 $2,338 | $8,631
|
PRODUCT GROSS MARGIN $748 $851 $717 $808 | $3,123
SERVICE MARGIN $529 $664 $656 $768 | $2,616
------ ------ ------ ------ | ------
GROSS MARGIN $1,277 $1,514 $1,373 $1,576 | $5,739
|
RESEARCH & ENGING $406 $405 $350 $369 | $1,530
SELLG, GEN& ADMIN $1,131 $1,177 $1,051 $1,088 | $4,447
RESTRUCTURE CHARGE $0 $0 $0 $0 | $0
------ ------ ------ ------ | ------
OPERATING INCOME -$260 -$68 -$28 $118 | -$238
|
INTEREST(INC)/EXP -$9 -$2 $0 -$2 | -$13
------ ------ ------ ------ | ------
INCOME BEFORE TAXES -$251 -$66 -$28 $120 | -$225
INCOME TAXES $10 $8 $2 $7 | $27
ACCTG CHG; NET OF TAX $0 $0 $0 $0 | $0
------ ------ ------ ------ | ------
NET INCOME -$261 -$74 -$30 $113 | -$252
====== ====== ====== ====== | ======
|
AVG SHARES OUT (M) 128 129 132 133 | 131
NET INC PER SHARE -$2.04 -$0.57 -$0.23 $0.85 | -$1.93
RATIOS: Q1FY93 Q2FY93 Q3FY93 Q4FY93 | FY93
|
PROD REV % OP REV 53% 53% 51% 53% | 53%
SERV REV % OP REV 47% 47% 49% 47% | 47%
|
PROD MARG % PROD REV 42% 43% 41% 39% | 41%
SERV MARG % SERV REV 34% 39% 39% 42% | 39%
GROSS MARGIN % 39% 41% 40% 40% | 40%
|
RES & ENG % PROD REV 23% 21% 20% 18% | 20%
|
RES & ENG % OP REV 12% 11% 10% 9% | 11%
SELL,G& A % OP REV 34% 32% 30% 28% | 31%
RESTRUCTG % OP REV 0% 0% 0% 0% | 0%
|
OPER INC % OP REV -8% -2% -1% 3% | -2%
|
INTEREST % OP REV 0% 0% 0% 0% | 0%
TAXES % INCOME -4% -12% -7% 6% | -12%
|
NET INCOME % OP REV -8% -2% -1% 3% | -2%
ACT/R = ACTUAL, RESTATED DIGITAL EQUIPMENT CORPORATION
($M) Q1FY92 Q2FY92 Q3FY92 Q4FY92 | FY92
ACT/R ACT/R ACT/R ACTUAL | ACTUAL
|
PRODUCT SALES $1,863 $1,939 $1,750 $2,143 | $7,696
SERVICE & OTHER $1,430 $1,540 $1,502 $1,762 | $6,235
------ ------ ------ ------ | ------
OPERATING REVENUE $3,293 $3,479 $3,253 $3,906 | $13,931
|
PRODUCT COST $910 $1,095 $1,023 $1,220 | $4,248
SERVICE EXPENSE $893 $944 $961 $1,085 | $3,884
------ ------ ------ ------ | ------
TOTAL COST OF SALES $1,803 $2,039 $1,984 $2,305 | $8,132
|
PRODUCT GROSS MARGIN $953 $844 $728 $923 | $3,448
SERVICE MARGIN $537 $596 $541 $677 | $2,351
------ ------ ------ ------ | ------
GROSS MARGIN $1,490 $1,441 $1,268 $1,600 | $5,799
|
RESEARCH & ENGING $412 $424 $433 $485 | $1,754
SELLG, GEN& ADMIN $1,058 $1,181 $1,139 $1,303 | $4,681
RESTRUCTURE CHARGE $0 $0 $0 $1,500 | $1,500
------ ------ ------ ------ | ------
OPERATING INCOME $20 -$164 -$303 -$1,688 | -$2,136
|
INTEREST(INC)/EXP -$21 -$12 -$12 -$14 | -$58
------ ------ ------ ------ | ------
INCOME BEFORE TAXES $40 -$153 -$291 -$1,674 | -$2,078
INCOME TAXES $29 $3 $20 $181 | $232
ACCTG CHG; NET OF TAX $485 $0 $0 $0 | $485
------ ------ ------ ------ | ------
NET INCOME -$474 -$155 -$311 -$1,855 | -$2,795
====== ====== ====== ====== | ======
|
AVG SHARES OUT (M) 125 124 125 126 | 125
NET INC PER SHARE -$3.80 -$1.25 -$2.50 -$14.76 | -$22.39
RATIOS: Q1FY92 Q2FY92 Q3FY92 Q4FY92 | FY92
|
PROD REV % OP REV 57% 56% 54% 55% | 55%
SERV REV % OP REV 43% 44% 46% 45% | 45%
|
PROD MARG % PROD REV 51% 44% 42% 43% | 45%
SERV MARG % SERV REV 38% 39% 36% 38% | 38%
GROSS MARGIN % 45% 41% 39% 41% | 42%
|
RES & ENG % PROD REV 22% 22% 25% 23% | 23%
|
RES & ENG % OP REV 13% 12% 13% 12% | 13%
SELL,G& A % OP REV 32% 34% 35% 33% | 34%
RESTRUCTG % OP REV 0% 0% 0% 38% | 11%
|
OPER INC % OP REV 1% -5% -9% -43% | -15%
|
INTEREST % OP REV -1% 0% 0% 0% | 0%
TAXES % INCOME 71% -2% -7% -11% | -11%
|
NET INCOME % OP REV -14% -4% -10% -47% | -20%
DIGITAL EQUIPMENT CORPORATION
($M) Q1FY91 Q2FY91 Q3FY91 Q4FY91 | FY91
ACTUAL ACTUAL ACTUAL ACTUAL | ACTUAL
|
PRODUCT SALES $1,866 $1,989 $2,100 $2,343 | $8,299
SERVICE & OTHER $1,228 $1,363 $1,420 $1,602 | $5,612
------ ------ ------ ------ | ------
OPERATING REVENUE $3,093 $3,352 $3,520 $3,945 | $13,911
|
PRODUCT COST $878 $924 $989 $1,114 | $3,905
SERVICE EXPENSE $780 $823 $860 $910 | $3,373
------ ------ ------ ------ | ------
TOTAL COST OF SALES $1,658 $1,747 $1,850 $2,024 | $7,278
|
PRODUCT GROSS MARGIN $988 $1,065 $1,111 $1,229 | $4,393
SERVICE MARGIN $448 $540 $560 $691 | $2,239
------ ------ ------ ------ | ------
GROSS MARGIN $1,436 $1,606 $1,671 $1,921 | $6,633
|
RESEARCH & ENGING $402 $404 $398 $446 | $1,649
SELLG, GEN& ADMIN $1,024 $1,066 $1,101 $1,281 | $4,472
RESTRUCTURE CHARGE $0 $0 $0 $1,100 | $1,100
------ ------ ------ ------ | ------
OPERATING INCOME $10 $136 $172 -$906 | -$588
|
INTEREST(INC)/EXP -$25 -$20 -$8 -$16 | -$69
------ ------ ------ ------ | ------
INCOME BEFORE TAXES $35 $156 $179 -$890 | -$520
INCOME TAXES $9 $45 $63 -$18 | $98
------ ------ ------ ------ | ------
NET INCOME $26 $111 $117 -$871 | -$617
====== ====== ====== ====== | ======
|
AVG SHARES OUT (M) 124 121 124 123 | 123
NET INC PER SHARE $0.21 $0.92 $0.94 -$7.08 | -$5.02
RATIOS: Q1FY91 Q2FY91 Q3FY91 Q4FY91 | FY91
|
PROD REV % OP REV 60% 59% 60% 59% | 60%
SERV REV % OP REV 40% 41% 40% 41% | 40%
|
PROD MARG % PROD REV 53% 54% 53% 52% | 53%
SERV MARG % SERV REV 36% 40% 39% 43% | 40%
GROSS MARGIN % 46% 48% 47% 49% | 48%
|
RES & ENG % PROD REV 22% 20% 19% 19% | 20%
|
RES & ENG % OP REV 13% 12% 11% 11% | 12%
SELL,G& A % OP REV 33% 32% 31% 32% | 32%
RESTRUCTG % OP REV 0% 0% 0% 28% | 8%
|
OPER INC % OP REV 0% 4% 5% -23% | -4%
|
INTEREST % OP REV -1% -1% 0% 0% | 0%
TAXES % INCOME 25% 29% 35% 2% | -19%
|
NET INCOME % OP REV 1% 3% 3% -22% | -4%
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| 2723.17 | Income tax on a loss?? | JUMP4::JOY | Perception is reality | Thu Oct 21 1993 17:53 | 6 |
Can someone explain why we've been paying income taxes on operating
losses? $3M income tax on $97M loss?? Something's wrong with that
picture.
Debbie
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| 2723.18 | MIMS::PARISE_M | Profitability?...fawgeddaBOW'dit! | Thu Oct 21 1993 18:48 | 5 | |
It's the Internal Revenue Service, not the Internal Profitability
Service.
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| 2723.19 | Accounting | ELMAGO::JMORALES | Thu Oct 21 1993 19:39 | 9 | |
Re: .17 Debbie
Please remember that the P&L that we publish to the financial
community every quarter is the lump-sum of all countries were we
do business. We did not loose money in every country. The
countries where we earn money, we have to pay taxes. In fact $ 3M
is awfully low and we MUST be using some financial policies (like the
seven year carry-back/carry-forward) to make it so low.
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| 2723.20 | SG&A dramatic reduction - breakdown anywhere ? | 58323::FERNANDEZ | Fri Oct 22 1993 00:37 | 7 | |
What factors led to such a dramatic improvement in SG&A ? That is from
Q4 to Q1 ? It cannot be only explained by a week less in q1 than in
Q4. Good expense control, heacount reduction, space consollidation,
aounting magic ? ALl the above ? It will be interesting to see
what factors contributed the most and whether they can be
sustained.
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| 2723.21 | Geneva/US overload on the Troops | YUPPY::PATEMAN | I'm a Mean Green Mutha from Outa Space | Fri Oct 22 1993 06:46 | 13 |
Please move if appropriate:
As part of the Q2 briefing in the UK we have been told the following.
Over current level of SG&A expense over here is 15%, to incorporate
this in with corporate a FURTHER 15% gets lumped on top. Active steps
are underway to investigate and reduce this by eliminating area and
corporate overheads. And where to they reside? Either Geneva or the US.
Our MD is adamant that UK SG&A can go no lower and that if anything we
have too few sales people, therefore the expense must come out
elsewhere.
Paul
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| 2723.22 | Thanks | JUMP4::JOY | Perception is reality | Fri Oct 22 1993 16:34 | 6 |
Re: .19 Thanks for the explanation. That makes sense.
Debbie
(who_works_for_GIA_and_should_have_known_that)
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