Gary
Welcome back. Hope this provides you a reentry point.
Just in case, here is the latest earnings report from Stratus.
STRATUS REPORTS SECOND QUARTER RESULTS
MARLBORO, Mass., July 22, 1998 -- Stratus Computer, Inc. (NYSE:SRA) today reported that revenues for the second quarter ended June 28, 1998 were $134.3 million compared to $167.6 million in the same quarter a year ago. The Company reported a loss in the quarter of ($10.0) million or ($0.42) per share, compared to earnings of $17.4 million and diluted earnings per share of $0.71 in the second quarter of 1997. Results in the second quarter of 1998 include a charge of $10.0 million, primarily to reserve for excess inventory focused at Asian markets.
For the first six months ended June 28,1998, Stratus reported revenues totaling $298.4 million, compared to $323.2 million in the same period of 1997. Earnings and diluted earnings per share for the 1998 period totaled $7.3 million and $0.29, respectively, compared to $32.2 million and $1.33, respectively, in the same period of 1997.
"Our second quarter results came in as we anticipated at the time of last month's earnings pre-announcement, and we had a number of wins that reaffirm our strategy," said Bruce I. Sachs, Stratus president and CEO. "Although we had another good quarter in Europe, business was weaker in the Americas than anticipated. We also continue to experience weak demand in Asia. We expect that these business conditions will continue in the near term, and that our overall financial results will be negatively impacted.
"Due to these disappointing results, the Company will take actions designed to align expenses with current revenue expectations. In the third quarter of fiscal 1998, the Company will take a restructuring charge to earnings of $20 million or approximately $0.83 per share. The charge will include expenses resulting from a company-wide reduction in force, downsizing the Company's facilities costs, and impairment of assets utilized by those employees. In addition to eliminating 50 positions resulting from voluntary attrition, the Company will have a reduction in force that will eliminate 350 positions representing approximately 15 percent of its worldwide employee workforce. These actions will be taken in the second half of 1998 with all affected employees being notified in our third fiscal quarter.
"We remain confident, nonetheless," said Sachs, "that our core value of continuous availability remains essential to the rapidly growing market for mission-critical telecommunications and financial services applications, and we will continue to invest in these areas. During the second quarter, for example, we extended our Intelligent Network (IN) portfolio of computer-based, continuously available applications with solutions for Virtual Private Network, Calling Name Delivery, Enhanced 800/Freephone, Premium Rate, Televoting, Number Portability and CDMA Over-the-Air service activation. At the same time, we continued to build our Internet IN solutions architecture and are actively participating in standards groups headed by Bellcore, IN Forum, and Level 3 Communications. We also introduced the Continuum(r) 400-CO, the industry's new price/performance leader for continuously available, central-office compliant systems running the HP-UX(tm) operating system," said Sachs.
During the second quarter, Stratus was awarded high-profile contracts from companies based in Latin America, China, and Canada. These include the following:
Huawei Technologies deployment of a Stratus-based Intelligent Network solution in Tianjin, China, offering multiple enhanced services. Lockheed Martin IMS' implementation of Canada's number portability administration database, along with strategic partner Evolving Systems, Inc.; In Latin America, a consortium of three of Mexico's largest banks has selected Stratus to implement a new interbank ATM infrastructure; and In Brazil, VISA Net selected the Stratus(r) platform for its smart-card processing and ATM applications.
In addition, Stratus achieved customer wins resulting from its reseller alliance with Hewlett-Packard Company, which included installations in Alcatel, Paris Bourse, and Belgacom.
"Stratus is well positioned for the long term in our strategic markets. We are confident of our ability to get the company back on track and to become a more efficient and profitable organization," concluded Sachs.
About Stratus
Based in Marlboro, Massachusetts, Stratus Computer, Inc. (NYSE:SRA) is the premier supplier of computer systems and services where continuous availability is a critical need. Stratus and its subsidiaries offer a broad range of continuously available computer platforms, applications software, middleware, and professional services. The company markets its systems and solutions to a range of industries in more than 60 countries. For more information, see Stratus on the Internet at stratus.com.
Regards
Neil |
