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Reuters, Thursday, October 30, 1997 at 14:52
WESTBORO, Mass., Oct 30 (Reuters) - Computer systems maker
Data General Corp, reporting record fourth-quarter sales, said
Thursday it expected slow sales of its new fibre-channel
CLARiiON disk arrays continue through the end of the year.
"As is often the case, complex technology transitions can
take longer than expected with different development and
testing required for each new platform," chief executive Ronald
Skates in a statement. "We believe these transition issues
impacted our fourth quarter CLARiiON growth, and based on
recent forecasts from our resellers, may also impact our first
fiscal quarter."
The company Thursday reported a net income of $17.0
million, or $0.35 a share, on record sales of $404.1 million in
the fourth quarter ended September 27. This compared with a
$9.9 million net, or $0.24 a share, on sales of $336.2 million
in the 1996 quarter.
But Data General's results fell short of Wall Street
expectations, which had put its earnings at $0.37 a share,
according to an October 24 First Call poll of 10 analysts.
The company's stock plummeted 18 percent to 19-1/8, down
4-1/4, in Thursday afternoon trading, after the New York Stock
Exchange had halted trading in the shares in the morning.
The company reported a 15-percent sales increase of its
AViiON servers. Revenues from products based on Intel Corp
(NASDAQ:INTC) technology more than doubled in the quarter,
offsetting a 53-percent sales drop of AViiON systems based on
older Motorola Inc (NYSE:MOT) 88K technology.
"Entering a new fiscal year for AViiON, we look for
improving overall revenue growth, as the drag of the older
88K-based AViiON diminishes," Skates said. "With cash and
marketable securities of $368 million, Data General is
well-positioned to support its AViiON, CLARiiON and Internet
growth startegy."
Copyright 1997, Reuters News Service
Let's see, that's about $7.67/share of cash. Revenues keep rising.
PSR <<1
Convince the mutual funds that DGN sucks and get them to sell back into single digits, then have a meal.
BZ |
