Cray Research sees net dropping up to 20% in 1992

Article Abstract:

Cray Research Inc anticipates a 10 to 20 percent decline in earnings for 1992 due to higher component costs, increasing competition and unexpectedly low sales for its computers. Cray expected a year-end net of $114.3 million or $4.20 a share in spite of weak 1st qtr 1992 results, but Cray's stock closed down 50 cents at $38.50 even before its announcement. Cray will be selling its low-end computers through DEC, but analysts are doubtful that the marketing would be as effective as Cray's and estimate a 25 percent drop in earnings for FY 1992. Cray projects a 10 percent growth in revenue from 1991's $862.5 million. Cray also estimates sales of at least 100 of its low-end supercomputers, ranging in price from $300,000 to $500,000, and seven of its Y-MP C90 supercomputers, for $30 million each. Cray's strategy is to reduce costs without reducing its workforce to counter its profit margin drop. Cray also plans to release middle- and low-end supercomputers based on massively parallel processing.

Computers, Product development, Product introduction, Digital computers, Distribution, Supercomputers, Supercomputer, Cray Research Inc., CYR, Digital Equipment Corp., DEC, Cost control, Cost Reduction, Distributors, Losses, Massive Parallelism, Cray Research Cray C-90 (Supercomputer)

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Telxon's lofty goals yield to harsh market realities: news of earnings shortfall spurs lawsuits, ouster of two top officials

Article Abstract:

Telxon Corp, a hand-held computer manufacturer, had projected a profit of more than $1 a share, but in the week of Dec 21, 1992, the company admitted that instead of earning $1.15 or $1.20 a share, as foreseen in October, the company will break even at best in the year ending Mar 31. Revenue will fall $20 to $23 million short of estimates of $255 to $265 million. Telxon Pres and CEO Raymond D. Meyo is forced to resign and is replaced by Chmn and former CEO Robert F. Meyerson. Shareholders file lawsuits, saying overly optimistic estimates allowed Meyo and COO Dan R. Wipff to sell 60,000 shares of the company's stock during the summer of 1992, before the company's stock price dropped. Telxon cites lower-than-expected sales, high marketing and development costs, and one-time charges as reasons for the disappointing results. According to Meyerson, the company is now on the mend.

Hand-held computers, Handheld computers, Profits, Appointments, resignations and dismissals, Telxon Corp., Company Profile, Forecasting, Industry Analysis, Outlook, Market Analysis, Firings, Profit, Meyo, Raymond D., Meyerson, Robert F.

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