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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: thebeach who wrote (26995)	1/6/1998 5:55:00 PM
From: Boplicity	Read Replies (2) \| Respond to of 176387

Unisys to halt PC production By Reuters January 6, 1998, 11:20 a.m. PT Unisys (UIS) said today that it would stop making personal computers and take a $1.1 billion charge in the fourth quarter, mostly to write off intangible assets from the merger that created the company. The company, which has moved away from manufacturing toward computer services and related businesses, also said it would stop making lower-priced servers. Unisys said it was in negotiations with another company to supply notebook and desktop PCs, as well as low-end servers, under the Unisys name. It did not identify the company, referring to it only as "a major global technology partner." If I was DELLs CEO I would be spending day and night trying to get this biz just for the service arrangment The company will finish making PCs and low-end servers currently on order. The PC business accounted for about $500 million in sales, it said, or about 8 percent of its annual revenues of about $6.3 billion. Unisys said it expects to retain a large part of its PC sales revenues through the supply arrangements that have yet to be finalized. Investors welcomed today's announcement, and Unisys stock rose 1 point, to 14-11/16 in morning composite trading on the New York Stock Exchange. Unisys chairman Lawrence Weinbach said the decision to stop manufacturing PCs was part of his effort to refocus the company. "While we are committed to providing a full range of technology systems and solutions to meet customer needs, we were not generating the volume needed to compete effectively and profitably in the PC business," he said in a statement. He added that the company will now concentrate on its family of ClearPath servers and Windows NT servers and services.