AT&T acquisition, soon to be spun off, regains NCR name

Article Abstract:

AT&T renames Global Information Systems the NCR Corp, returning the company to the name it had before AT&T acquired it in 1991 and taking the first steps toward spinning it off as part of AT&T's restructuring. AT&T paid $7.5 billion in a hostile takeover of NCR, but the anticipated convergence of computers and telecommunications never emerged, and NCR fell into a cycle of slow sales and falling profits. In the first nine months of 1991, NCR had revenue of $4.3 billion with earnings of $63 million, but in the same period in 1995, it had losses of $501 million from revenues of $5.89 billion. AT&T took a $1.6 billion charge to pay for getting out of NCR and for the layoff of 8,500 NCR employees. The reinstitution of the NCR name will build on a brand recognition that still exists and indicates the company's intention to focus on its strengths, which include computer systems for banks, retailers and large companies.

Electronic computers, Electronic Computer Manufacturing, Computers & Auxiliary Equip, Computer industry, NCR Corp., NCR, Spinoff company, Spinoffs (Corporate)

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In AT&T's attic, $1 billion of flops and fumbles

Article Abstract:

AT&T plans a $1.1 billion pretax write-off in 1995 to cover the decline in value associated with a number of unprofitable ventures. The less profitable efforts include The Imagination Network, a network consisting entirely of computer games. In 1995, the network had only 62,000 subscribers. AT&T's partnership with Canadian telecommunications firm Unitel cost $150 million to set up in 1993, and the Canadian company later became almost bankrupt, forcing AT&T and banks to save it. AT&T's Personalink network, designed to connect computers to hand-held computers and pagers, failed to gain popularity. AT&T plans to determine whether each venture associated with the write-off is to continue or will be scrapped. The company has already reiterated its committment to Unitel. AT&T is closely examining its consumer product group, which produces answering machines, telephones and other devices with low profit margins.

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