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Technology Stocks : Data General Corp. "dgn" -- Ignore unavailable to you. Want to Upgrade?

To: Spartex who wrote (288)	5/17/1999 12:06:00 PM
From: DJBEINO	Read Replies (1) \| Respond to of 354

Data General to Hire 450 to Boost Marketing of Storage Devices Bloomberg News May 17, 1999, 7:25 a.m. PT Data General to Hire 450 to Boost Marketing of Storage Devices Westboro, Massachusetts, May 17 (Bloomberg) -- Data General Corp., which transformed itself to a computer storage and server company from a maker of minicomputers, will spend about $100 million to hire more than 450 people to boost marketing of its storage devices. The company expects to hire the new workers for its Clariion division during the next 18 months. The division, which makes devices that store large amounts of computerized information, had $400 million in revenue in the fiscal year ended in September. Sales of Data General's Clariion systems rose a less-than- expected 12 percent in the fiscal second quarter as the company lost business from Hewlett-Packard Co., which started making its own products. Data General last year began hiring salespeople for a speedier storage technology, targeting a market that EMC Corp., the No. 1 maker of corporate storage systems, is eyeing. ''They're betting they can do better than EMC is this market. It's a big gamble,'' said Bill Milton, an analyst at Brown Brothers Harriman, who rates Data General ''neutral.'' Data General shares fell 1/2 to 11 3/4 in early trading. EMC dropped 2 3/4 to 101. The company is betting on fibre channel-based systems, a market where sales are projected to rise 65 percent annually, according to Westboro, Massachusetts-based Data General. Fibre- channel technology stores information faster than current systems. ''The long-term market opportunities dictate these actions,'' said Data General President and Chief Executive Ronald Skates in a statement. The addition to the sales force precedes Data General's announcement tomorrow on its strategy on storage systems linked together in networks. So-called Storage Area Networks are a new way that companies with Internet-based computer networks will store information.