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Technology Stocks : Sequent -- Ignore unavailable to you. Want to Upgrade?

To: Gordon Quickstad who wrote (1224)	7/22/1999 4:15:00 PM
From: Rob C.	Read Replies (1) \| Respond to of 1229

BEAVERTON, Ore.--(BUSINESS WIRE)--July 22, 1999--Sequent Computer Systems (Nasdaq:SQNT.O) today reported a net loss of $16.5 million ($0.39 per share) on revenue of $143.5 million for the second quarter of 1999, ended July 3. Senior vice president of finance and chief financial officer Bob Gregg said the quarter's poor showing was a direct result of confusion among customers, partners and the Sequent sales force caused by early press reports of the company's pending merger with IBM. "Faced with uncertainty about the company's immediate future, many customers -- including several with large projects -- simply postponed planned purchases. We specifically identified over $50 million in forecasted transactions that did not close as a consequence of rumors and news stories that circulated during the last three critical weeks of the quarter. The level of uncertainty on both sides of these transactions was heightened by our inability to comment on the deal while negotiations were underway. The good news is that we believe the majority of those transactions were merely deferred, not lost." Following formal announcement of the proposed merger on July 12, the reaction of customers has been overwhelmingly positive, said Sequent president and chief operating officer John McAdam. "Sequent's current product and service offerings represent some of the best UNIX and Windows NT solutions on the planet. As a relatively small player, it has become increasingly difficult to maintain the support of independent software vendors and to win new business, even among our installed base. Our work with IBM on Project Monterey and our subsequent negotiations with them to resell our Merced-based systems were aimed specifically at raising awareness of Sequent and our products, broadening our distribution channels and providing a compelling 64-bit migration path for our customers and partners. Within the past few months, these efforts led to the realization that there is the potential for enormous synergy between Sequent and IBM that could best be realized by combining the two companies. "As we prepare to merge our organizations, we are excited about the prospect of adding our expertise in building and selling scalable, Intel-based servers to the breadth of skills and offerings in IBM's server division. Until the merger is completed, however, we remain focused on our current business opportunities and continue to be cautious about the company's near-term prospects," McAdam said. Forward-Looking Statements Information in this press release relating to the company's expectations as to future products and results and anticipated benefits from the merger constitute forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. These factors include potential delays in product development, competitive factors in the market and difficulties in completing the merger. Reference is made to the company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission for a discussion of these and other factors that could cause actual results to differ materially from the forward-looking statements. About Sequent Computer Systems, Inc. Sequent Computer Systems (Nasdaq:SQNT.O), the leader in Intel-based solutions for the data center, is committed to the success of its end-user and system integrator customers. Sequent's platform architectures and services are optimized for the scalability, availability and manageability requirements of large, growing corporate infrastructures leveraging Internet technologies, database technologies and best-of-breed partnerships. Sequent supports more than 10,000 installations worldwide, including many of the world's largest and most sophisticated e-commerce, CRM and business intelligence environments. For further information, phone Sequent at 503/626-5700 or 800/257-9044, visit our Web site at www.sequent.com or purchase products at www.sequent.com/direct. -0- T Three Months Ended Six Months Ended July 3 July 4 July 3 July 4 1999 1998 1999 1998 -------- -------- -------- -------- Revenue(A) $143,517 $185,677 $337,496 $368,745 Net income (loss)(A) $(16,528) $(58,752) $(15,308) $(54,730) Net income (loss) per share - basic $ (0.39) $ (1.34) $ (0.36) $ (1.26) Net income (loss) per share - diluted $ (0.39) $ (1.34) $ (0.36) $ (1.26) Note A: Amounts in Thousands T All brand and product names appearing in this release are registered trademarks or trademarks of their respective holders. --30--CER/se* CONTACT: Sequent Computer Systems, Inc. Investor Relations: John Eldridge, 503/578-4155, johne@sequent.com or Corporate Communications Mike Fay, 212/317-5710, mikefay@sequent.com businesswire.com KEYWORD: OREGON INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS EARNINGS Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com Copyright 1999, Business Wire