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Technology Stocks : Digital Equipment Corp. (DEC) -- Ignore unavailable to you. Want to Upgrade?

To: William L. Vu who wrote (2729)	1/15/1998 8:33:00 PM
From: William L. Vu	Respond to of 3276

BOSTON, Jan 15 (Reuters) - Digital Equipment Corp Chief Financial Officer Vin Mullarkey said he expects revenues to grow "significantly" in the second half of the year, above levels achieved in the second quarter. "We also expect growth to continue at a fairly significant level, and in fact improve in the second half over the growth that we've enjoyed this past quarter," Mullarkey told reporters in a conference call. Revenues grew by six percent in local currency terms in the second quarter, but fell in U.S. dollar terms due to currency fluctuations. Total operating revenues in U.S. dollars fell to $3.32 billion in the second quarter from $3.36 billion in the previous second quarter. Mullarkey said that sales of Alpha servers grew about two percent in U.S. dollars year-over-year in the second quarter. In local currencies, Alpha server sales grew about nine or 10 percent, he said. Sales of Alpha workstations continued to slide, dropping 26 percent in U.S. dollars year-over-year in the second quarter, but sales of Windows NT workstations have helped counter that drop-off, he said. Bruce Claflin, head of worldwide sales and marketing, said that sales in the Asia/Pacific region, which historically have grown by double digits over the past five years, had a double-digit dropoff in the second quarter. He said that the currency fluctuations impacting the region and a slowdown in sales hurt overall revenues from the region. "As the business clearly is becoming more risky, we consciously chose to bring down channel inventories," he said. "So our inventories are in very good shape, and we're prepared for the very much slower environment, but obviously that impacted our business in Q2." Mullarkey said that Asia/Pacific sales account for about 20 percent of overall revenues. "We're hopeful that the situation has hit bottom. Nobody knows the answer to that question," Mullarkey said. "But from an operating point, we're hoping that things will not deteriorate any further." 367-4176, fax (617) 248-9563)) REUTERS Rtr 17:42 01-15-98