Conference 7.286::digital

From:	BOOKS::HAMILTON     19-JAN-1994 09:02:09.14
To:	WREATH::PZEGEO
CC:	HAMILTON
Subj:	In case you haven't seen them...

Q2 results are not good.

Net loss $72,144,000  or .53/share

Revenue 3,254,079,000 v. 3,689,443,000 same quarter last year.
(down 400M dollars).

This is not good.  Sorry to be the bearer of bad news.

Glenn

    I sold at 37 5/8ths.   Thank god!
    bob
    

    
    	I sold all @ 97 5/8th      Fortunatly I had no choice at the
    time...
    
    Pulled out of the plan also.....

    I can beat that......On October 14th my ex wife said she was going to
    sue me, so I sold all my stock in preparation.  At $192/share....guess
    which Ocotber, I'm talking about.   anyway, she never sued me and I
    sent a thankyou card.  She probably thought it was for not sueing me.
    
    The scale balances.  In that same year, I told my boss of the time,
    that I would get my business 10% higher than goals ($50m was the goal)
    if he would provide stock options.  I didn't want a raise or SP2 bonus
    or DECathlon, just options.  I came in at $61m and got 100 shares worth
    $158/share (at 85% market value)   Well, I just sold those options back
    to Digital at $3/share.  So I got $221.00 dollars (after taxes) for
    selling $61m worth of stuff.   You need to have a philosophical outlook
    about this.
    

    ...Back when the 9000 series VAXen came out a hotshot sales guy told
    me 'buy DEC stock like crazy... this [VAX] system is really going to
    do somthing to our stock price!!'.
    
    I guess they were right about the 2nd part.
    
    Lee

RE:  Note 2862.2 by CSOADM::ROTH "NRA membership: 800-368-5714"
     this is already in another topic...

Sorry, I searched for "results" and didn't find anything.  Didn't know I had
to search for "numbers" also.

- Jim

From clarinet. IBM Must be doing well after all of the extras they sold to
    us...
    
    
    Subject: IBM reports first quarterly profit since second-quarter of
    1992

	ARMONK N.Y. (UPI) -- International Business Machines Corp. Tuesday
reported its first quarterly profit in more than year, as its fourth-
quarter net income climbed to $382 million, or 62 cents a share, from a
loss of $45 million, during the same period a year earlier.
	The last time Big Blue reported a quarterly profit was during the
second quarter of 1992.
	Revenues at the computer giant dipped to $19.4 billion from $19.6
billion a year earlier.
	The results were essentially in line with Wall Street estimates, but
IBM's stock fell quickly after the announcement on some concerns about
the company's sales.
	IBM noted its latest per share results followed preferred stock
dividends of $20 million.
	Last year results, the company said, were before restructuring
charges. After restructuring charges, IBM posted a loss of $5.5 billion.
	For the year, IBM reported a loss of $8.1 billion compared with a
loss of $4.9 billion in 1992.
	Revenues for the year declined to $62.71 billion from $64.52 billion
a year earlier.
	On a geographic basis, IBM said United States revenue grew by 9
percent in the fourth quarter compared with the same period a year
earlier, continuing a quarterly improvement trend.
	IBM's fourth-quarter is typically its strongest because of heavy
year-end buying by computer custerms, analysts noted.
	IBM Chairman and CEO Louis V. Gerstner Jr. said, ``Last year, IBM
embarked on a two-part plan -- to return to profitability and, over the
longer term, develop a comprehensive set of business and technology
strategies in each of our units. We are making progress on both fronts.
IBM was profitable in the fourth quarter despite tough business
environments in Europe and Japan, and the results of the work we are
doing on our strategic priorities will become clearer to our customers
in 1994.''
	In a separate move, the board of directors of IBM declared a regular
quarertly dividend of 25 cents a share, payable March 10 to shareholders
of record Feb. 10.
	IBM, which reduced its work force by 45,000 in 1993, said revenue
from Europe and Asia, after currency adjustments, declined in the fourth
quarter by 1 percent and 4 percent, respectively, from a year earlier.
	This decline does not include work force reductions resulting from
the sale, announced in the fourth quarter of 1993, of IBM's Federal
Systems Company. This transaction is expected to close in the first
quarter of 1994, reducing IBM's work force by approximately 10,000
additional employees.
	IBM's overall hardware sales revenue declined 5.4 percent to $10.4
billion, service revenue, however, jumped 31.9 percent to $3.2 billion
in the fourth quarter.
	Software revenue declined 3.8 percent, largely due to a decline in
one-time-charge software, principally AS/400 software. Maintenance,
rentals and financing revenue also decreased year-over-year.
	Within specific hardware product areas, IBM said personal computer
revenue rose strongly in the quarter, compared with 1992's fourth
quarter, and RISC System/6000 revenue increased.
	AS/400 revenue fell in the quarter primarily as a result of sluggish
European demand. Mainframe and high-end disk drive revenue also declined
year-over-year, the company said.
    
    

    
            HOUSTON (UPI) -- Compaq Computer Corp., continuing its
    phenomenal growth in the personal computer market, Wednesday reported record
    results for the fourth quarter and the year.
            The Houston-based company reported earnings of $151 million, or
    $1.73 a share, in the fourth quarter, compared with $89 million, or $1.10,
     in the fourth quarter of 1992.
            Quarterly sales were up 55 percent to $2.2 billion from $1.4
    billion in the 1992 quarter.
            The fourth quarter results helped Compaq to close out 1993 with
    record profits of $462 million, or $5.35 a share, or more than double
    1992 profits of $213 million, or $2.52 a share.
            Annual sales roared to $7.19 billion, up 75 percent over $4.1
    billion in 1992.
            Eckhard Pfeiffer, president and chief executive officer, said,
    ``Compaq's record sales growth is the result of unprecedented customer
    demand for our products throughout the world.''
            He said the company enjoyed strong demand for desktop, portable
    and server products in the traditional markets and dramatic growth of
    consumer sales through retail outlets.
            The company said 1993 sales growth set records in every region.
            North America grew 100 percent to $3.7 billion; Europe
    (including Eastern Europe, Middle East and Africa) grew 44 percent to $2.7
    billion; and other international markets (including Japan, Latin America and
    Pacific Rim) grew 111 percent to $800 million.
            Worldwide unit shipments reached 3.1 million, up 98 percent
    over 1992.
            Compaq was credited with achieving the industry's largest 1993
    market share growth by independent market research firms Dataquest, Inc. and
    International Data Corp.
            Compaq said it continues to improve its position as one of the
    lowest cost producers. Annual sales per employee reached about $700,000 in
    1993, the highest among major computer manufacturers.
            To make it easier for customers to buy its products, Compaq
    expanded its worldwide marketing partners from 9,500 at the beginning of 
    1993 to more than 16,000.
            Pfeiffer said Compaq will increasingly leverage its brand name
    to continue gaining market share in the consolidating computer market.
            ``We will focus our efforts on the business and consumer
    customer segments and work to increase sales in government and education. 
    The Company will announce a significant number of new desktop, portable and
    server products to meet a variety of customer needs,'' he said.

    
    re: .9
    
    Guess it's about time for Compaq to announce a big layoff.
    
    Glenn

    
    Gee, John Rose has only been with Compaq for six months.
    Go get 'em Johnny!
    
    gb
    

    Compaq's new systems are selling like crazy. They're also advertising
    them like crazy and they're available everywhere. Even the Sams
    warehouse club has some of them in stock here in Houston. It's the only
    brand currently approved for purchase at one of my major international
    customers.
    
    I tried to get them a Digital PC as a loaner last year, but it was shot
    down by their internal computer people! They said that only approved
    systems could be brought on site! Talk about a hard place to sell....
    
    Harry
    

    >  The fourth quarter results helped Compaq to close out 1993 with
    >  record profits of $462 million
    >  Annual sales roared to $7.19 billion

    What is Compaq's headcount? 

    don't know the exac but their approx. revenue/employee is whopping
    700K so that computes to little more than 10K employees.

    
    IBM's revenue per employee is (rounded figures) 245,000 while ours is
    152,000.

    re: .14
    
    Compaq has approximately 9,000 employees of which 2600 are involved in
    assembly and testing of equipment.  High sales per employee is due to
    the fact that they sell 70% of their product through channels.
    
    Laura

    
    Re: .15
    
    > IBM's revenue per employee is (rounded figures) 245,000 while ours is
    > 152,000.
    
    This just goes to show how little this metric tells you.  About
    5 years or more ago our figure was about $90K and we were still
    profitable.  Now this metric has increased from that figure by over 
    50% but we're losing money.
    
    Steve
     

    
    Thanks for the info, Steve.  I was curious about what they were in
    better times.
    
    
    Mike