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

To: PerryA who wrote (24453)	4/16/1998 7:28:00 AM
From: Mark A. Palma	Read Replies (3) \| Respond to of 97611

DEC CRUSHED EARNINGS!!!!! LOOK FOR DEC AND CPQ to shoot up big today! Thursday April 16, 7:06 am Eastern Time Company Press Release SOURCE: Digital Equipment Corporation Digital Equipment Corporation Reports Net Income of $307 Million For The Third Quarter Company Records Strong Growth In Strategic Solutions Earnings Per Share Growth 140 Percent Before One-Time Gain MAYNARD, Mass., April 16 /PRNewswire/ -- Digital Equipment Corporation (NYSE: DEC - news) today reported net income of $307 million, or $1.99 per common share on a diluted basis, for its third quarter which ended March 28, 1998, compared with net income of $51 million, or $0.27 per common share on a diluted basis, for the same period last year. The quarterly results reflect a $201 million net after tax gain from the sale of the company's network products assets to Cabletron Systems and continuing operations net income of $106 million, or $0.65 per common share on a diluted basis. Total operating revenue for the quarter was $3.191 billion, compared with $3.314 billion reported in the same quarter last year. The strong U.S. dollar had a significant impact on revenue growth. In constant currency, the revenue growth rate would have been about seven points higher than reported results. Total operating revenue was up three percent in constant currency. Product revenue for the quarter was $1.682 billion, compared with $1.837 billion reported in the prior year. Adjusting for currency and the divestment of network products, product revenue was up slightly year-over- year. Service revenue was $1.509 billion, compared with the $1.478 billion reported in last year's third quarter. In constant currency, services revenue was up nine percent. Revenue and order rate growth in the Americas and Europe was encouraging. In the Americas, revenue was up 8 percent in constant currency while in Europe, revenue was up 2 percent in constant currency. Asia revenues declined on a year-over-year basis, consistent with the weak economic pattern established in mid-1997. ''I am very pleased with the overall performance of the company,'' said Digital Chairman Robert B. Palmer. ''Digital is transforming into a services- led solutions provider and customers showed confidence in the industry-leading offerings delivered by our first class sales and services employees. We experienced improvement in nearly all operating areas.''