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To: BGR who wrote (118173)	4/16/1999 8:25:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

China-PC maker Founder stumbles with big operating loss. Apratim: Wonder why????? Perhaps-Consolidation? Getting a bit too hot in the kitchen I suppose. ========================= Friday, April 16, 1999 BUSINESS Founder sees loss of $162m LANA WONG -------------------------------------------------------------------------------- Computer firm Founder (Hong Kong) plunged into the red with a worse than expected operating loss of $162.38 million for the year to December 31. The red chip made an attributable profit of $142.53 million in 1997. The loss came mainly in the second half. The firm had posted a 72 per cent year on year decline in net profit to $17.05 million for the first half in results partly affected by losses in its hardware business. The operating loss came despite an increase of about 9 per cent in turnover to $2.15 billion. No final dividend will be paid. The company paid a final dividend of eight cents a share a year earlier. Founder said profit from its main income earner, electronic publishing software, was flat in the mainland and showed a drop for the overall operations. Operating costs remained relatively high and plans to streamline the workforce had not yet been completed, it said. The firm said last year it planned to lay off 10 per cent of its 3,000-strong workforce. In view of the operational difficulties, the firm had established a new direction for business development of each of its operating units. It has also initiated a series of management changes, including a restructuring of the board and the management of its research and development centre. The firm would concentrate on its core business and high-growth overseas markets, it said. Founder said time would be needed before the measures could achieve significant economic returns, but it was confident about their contribution to long-term development. Analysts said the firm still enjoyed growth in its business despite the huge operating loss. The firm's share price has climbed about 33 per cent in the past month to close at $1.16 yesterday.