From: jaques@drbob.corp.sgi.com ()
Subject: Re: DEC deal with Bush
Reply-To: jaques@drbob.corp.sgi.com
Organization: Silicon Graphics Inc , Network Engineering
Date: Fri, 24 Jul 1992 20:05:30 GMT


--
In article <1992Jul23.174644.8704@oakhill.sps.mot.com>,
dong@oakhill.sps.mot.com (Don M. Gibson) writes:
|>!>Newsgroups: alt.politics.bush,alt.politics.clinton,comp.sys.dec
|>!>From: dong@oakhill.sps.mot.com (Don M. Gibson)
|>!>Subject: Re: DEC deal with Bush
|>!>
|>!>tw1u+@andrew.cmu.edu (Tse-Sung Wu) writes:
|>!>
|>!>>NOTE CROSS-POSTINGS--
|>!>
|>!>>I am not interested in a flame or even mildly heated debate about the
|>!>>candidates.  I just have a rumor that I'd like to know if anyone
|>!>could
|>!>>confirm or deny.  I haven't seen anything posted on the net.  If I
|>!>>missed something, please forgive the rehashing.
|>!>
|>!>>The daughter of a classmate of mine works at DEC somewhere and said
|>!>that
|>!>>it is common knowledge among DEC employees (the story is purportedly
|>!>>floating about on DEC's email net) that a huge (30,000? employee)
|>!>layoff
|>!>>has been _postponed_ until after the election at the request of
|>!>>President Bush.  And that the latter offered DEC hefty contracts in
|>!>>return for the postponement.
|>!>
|>!>>Is this just a rumor, 'cause I haven't seen anything about this in
|>!>the
|>!>>papers.  Not interested in flames, just want to know if this is just
|>!>a
|>!>>rumor.
|>!>
|>!>
|>!>supporting info:  DEC fouth quarter loss for '91 was $1.8Bil.  The
|>!>news said DEC had the lowest revenue/employee ratio in the computer
|>!>biz. and that cost (employee) cutting measures were immenant.
|>!>
-------------------------
wrong
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        MAYNARD, Mass. (UPI) -- Digital Equipment Corp. reported a record $1.
85 billion loss for its fiscal 1992 fourth quarter Thursday, compared
with a loss of $871.3 million in the year-ago quarter.
        The record loss for the quarter reflects a $1.5 billion restructuring
charge -- to be used primarily for staff reductions, facility
consolidations and related administrative costs.
        Word of yet another round of staff cuts at the staff-heavy computer
giant proved encouraging to investors. Digital stock was up 50 cents, to
$41, in midday trading on the New York Stock Exchange.
        The company -- IBM's chief rival -- provided no specifics on planned
staff cuts, but analsyts said the computer giant -- which already has cut
23,000 jobs from its payroll in three years -- may have to slash another
20,000 to get back in the black.
        ``Our financial results continue to disappoint us,'' said DEC
President and CEO Kenneth Olsen. ``We face an economic slowdown in
virtually every major geography, particularly in Europe and Asia. We are
taking actions designed to increase revenues, increase market share,
reduce costs and improve our efficiency.'' 
        Revenues for the quarter ended June 27 slipped to $3.9 billion from
$3.94 billion in the fiscal 1991 fourth quarter, which ended June 29,
1991.
        The company attributed the decline in revenue to continued weak
ecoomic conditions, highly competitive pricing and the negative impact
of foreign exchange rate movements.
        While DEC shipped more computer systems than it did a year ago, the
company said it got a lower average price per system. But service
revenues continued to grow.
        For the full year, DEC posted a loss of $2.79 billion, compared with
a $617.4 million loss a year ago. The loss inluded a one-time charge of
$485.5 million associated with a change in the method of accounting for
non-pension post-retirement benefits, as well as the $1.5 billion
restructuring charge.
        Revenues for the fiscal year were up slightly, to $13.93 billion
compared with $13.91 billion a year ago.
        DEC has pared some 23,000 jobs from its worldwide work force in the
past three years -- including 3,700 U.S. workers who left the company
under a special early retirement program during the second quarter.
        But analysts say it must be more aggressive about cutting the payroll
and bringing capacity into line with demand. That, they said, could mean
cutting as many as 20,000 jobs from DEC's present 113,800-person
worldwide work force.
        And they believe the Oct. 1 retirement of Olsen, the company's
founder, will set the stage for more drastic cuts. DEC stock rallied
last week when Olsen announced his retirment plans.
        Olsen reportedly has resisted calls for large-scale layoffs,
preferring to reduce staff through attrition and early retirment offers.
        Robert Palmer, Olsen's hand-picked successor, is regarded in the
industry as more of a bottom-line man.
        DEC announced Wednesday that its board had, as expected, elected
Palmer to succeed Olsen. Palmer, currently vice president-manufacturing
and logistics, also was alected to the DEC board.
        He will assume the new posts of president and CEO Oct. 1 when Olsen
steps down, but will begin serving on the board immediately. Olsen will
continue to serve on the board.
        ``Our game plan for recovery remains intact: continue cost
reductions, generate revenue growth, and manage the balance sheet,''
said John F. Smith, DEC senior vice president-operations. ``While we've
made progress in some areas, we need to continue the effort and do more.
        ``We intend to continue the cost-reduction efforts,'' he added. ``As
a result, the company absorbed a restructuring charge of $1.5 billion to
be used for employee separations, plant consolidations and associated
costs.''
        ``While our goal is to return to profitability as soon as possible,
for the remainder of 1992 we remain cautious about both revenues and
profits due to the uncertainties in both the industry and worldwide
economies,'' he said.
        DEC, headquartered in Maynard, is the leading worldwide supplier of
networked computer systems, software and services. Digital pioneered and
leads the industry in interactive, distributed and multi-vendor
computing.


From clarinews@clarinet.com Fri Jul 24 12:28:42 1992
Article: 5995 of clari.biz.finance.earnings
clari.tw.electronics:1517


____________________________________________________________
Bob Jaques                     | tel  415-390-3819
Manager Network Engineering    | fax  415-961-9584
Silicon Graphics Inc           | jaques@drbob.corp.sgi.com
2011 N. Shoreline Blvd.        |
Mountain View CA 94039         |  drbob
------------------------------------------------------------
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Newsgroups: alt.politics.bush,alt.polotocs.clinton,alt.fan.dan-quayle