sales good for Aviion NUMA...NUMA based servers up 70% over prior year
Subject:
Data General Reports First Quarter 1998 Results
Date:
Thu, 22 Jan 1998 05:13:39 -0800 (PST)
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News Alert from BusinessWire via Quote.com
Topic: (NYSE:DGN) Data General,
Quote.com News Item #5146977
Headline: Data General Reports First Quarter 1998 Results
======================================================================
WESTBORO, Mass.--(BUSINESS WIRE)--Jan. 22, 1998--Data General
Corporation today reported net income of $3.5 million, or $.07 per
share on a diluted basis, on revenues of $365.3 million, for its first
quarter of fiscal 1998, which ended December 27, 1997.
For the first quarter of fiscal 1997, the company reported net
income of $10.4 million, or $.25 per share on a diluted basis, on
revenues of $348.5 million.
"While year-over-year revenues increased and our outlook remains
positive, our overall first quarter results were disappointing," said
Data General President and Chief Executive Officer Ronald L. Skates.
"The results were affected by the ongoing transition we are making in
our storage business to fibre-channel technology and by weaker than
expected product gross margins."
"Revenues from our CLARiiON storage business were comparable to
last year's first quarter," said Mr. Skates. "As we and our customers
make the transition from traditional storage technology to advanced
fibre-channel technology, it is impacting short-term CLARiiON
revenues. While the second fiscal quarter also will be challenging,
the outlook for CLARiiON is positive. We have strong products in our
traditional markets, and fibre channel positions us well in additional
markets that require the ability to scale to several terabytes of
storage, such as data warehousing, video, multi-media, scientific,
imaging and enterprise-class storage solutions."
The company said that the decline in product gross margins
compared with last year's first quarter reflects competitive pricing
pressures and a shift in product mix.
Revenues for the company's AViiON server line were ten percent
higher than last year's first quarter with revenues for Intel based
systems growing nearly 70 percent. The increase was driven by
continued strong sales of the company's NT based AViiON servers and by
the growing demand for its new high-end NUMA technology based AV 20000
UNIX servers.
"We are pleased with the acceptance of our NUMA based AViiON
servers. The new servers are opening up additional opportunities for
us in high-performance on-line transaction processing and data
warehousing applications," said Mr. Skates.
Since the company began volume shipments of the AV 20000 servers
in the fourth fiscal quarter of 1997, more than 150 systems have been
shipped worldwide. This includes the installation of the industry's
first 32-processor Intel based NUMA system.
In a recently completed industry standard benchmark test, a
32-processor AV 20000 server running Oracle8 database software and
using CLARiiON fibre-channel storage established an industry best
price/performance and the highest Oracle performance to date for the
TPC-D decision support benchmark.
"Revenues during the quarter for our AViiON systems that run the
Windows NT Server operating system more than doubled from prior year
levels," said Mr. Skates. "There was good growth in a number of key NT
target markets including enterprise systems running software such as
SAP's R/3 business suite, Microsoft Exchange and Citrix WinFrame
multi-user NT software, as well as clustered systems with our NT
Cluster-in-a-Box solution."
The AViiON NT line was further strengthened late in the quarter
with the introduction of a new high-end enterprise server, the AV
8600. The new system supports up to eight 200MHz Pentium Pro
processors and can also be used in clustered configurations running
Microsoft Cluster Server.
Mr. Skates concluded, "The fundamentals of our business remain
strong. While we remain cautious short-term, we believe that with our
leading-edge AViiON server and CLARiiON storage lines, Data General is
in a position to resume solid revenue growth and improved
profitability in the second half of the fiscal year."
Statements concerning the company's business outlook, anticipated
profitability, revenues or expenses, and product line growth, together
with other statements made in this press release which are not
historical facts, are "forward-looking statements," as that term is
defined under the Federal Securities Laws. Such statements are subject
to risks and uncertainties which could cause actual results to differ
materially from those projected. Such risks and uncertainties include,
but are not limited to, fluctuations in customer demand, order
patterns and inventory levels, changes and delays in product
development plans and schedules, customer acceptance of new products,
changes in pricing or other actions by competitors, general economic
conditions, as well as other risks detailed in the company's filings
with the Securities and Exchange Commission, including Data General's
Report on Form 10-K for the 1997 fiscal year which ended September 27,
1997.
NOTE - Information on Data General, its products and services,
can be accessed on the Internet at dg.com . Additional
information on the CLARiiON Business Unit can be accessed at
clariion.com
AViiON and CLARiiON are registered trademarks, and
Cluster-in-a-Box is a trademark of Data General Corporation.
*T
DATA GENERAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions except per share amounts)
Quarter Ended
Dec. 27, Dec. 28,
1997 1996
Revenues:
Product $ 267.2 $ 249.8
Service 98.1 98.7
Total revenues 365.3 348.5
Costs and expenses:
Cost of product revenues 189.2 165.1
Cost of service revenues 60.2 64.4
Research and development 27.4 26.2
Selling, general, and administrative 84.4 80.6
Total costs and expenses 361.2 336.3
Income from operations 4.1 12.2
Interest income 3.5 2.0
Interest expense 3.6 3.2
Income before income taxes 4.0 11.0
Income tax provision .5 .6
Net income $ 3.5 $ 10.4
Basic income per share $ .07 $ .26
Weighted average shares
outstanding - Basic 48.6 39.7
Diluted income per share $ .07 $ .25
Weighted average shares
outstanding - Diluted 50.7 42.1
DATA GENERAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
Dec. 27, Sep. 27,
1997 1997
Assets:
Current assets:
Cash and temporary cash investments $ 141.4 $ 216.8
Marketable securities 156.6 151.4
Receivables, net 303.8 296.4
Inventories 186.1 166.0
Other current assets 32.7 27.6
Total current assets 820.6 858.2
Property, plant, and equipment, net 188.1 180.4
Other assets 103.5 96.3
$1,112.2 $1,134.9
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable $ 158.6 $ 154.6
Other current liabilities 207.1 237.2
Total current liabilities 365.7 391.8
Long-term debt 212.8 212.8
Other liabilities 9.1 11.5
Total stockholders' equity 524.6 518.8
$1,112.2 $1,134.9
*T
CONTACT: Data General Corporation
Jim Dunlap, 508/898-6546
jim_dunlap@dg.com
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS EARNINGS
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