Cray Research tries to adjust to a harsh new world: supercomputer maker wrestles with intense competition, weak economy
Article Abstract:
Cray Research Inc, hurt by the recession and by fierce competition from Japanese giants and US mini-supercomputer vendors, failed to emerge in 1992 from its long-standing sales slump and expects net income to fall 95 percent to around $6 million. The firm's stock price has dropped 84 percent from its 1987 high of $134.75 to close at $21.375 in Nov 1992. Cray still has two-thirds of the total installed base of supercomputers, but Fujitsu Ltd, NEC Corp and other Japanese firms challenge it at the high end while Convex Computer Corp has taken some of its market share at the low end. Officials say that Cray may cancel or change its contract with DEC, which markets the new entry-level Cray lines. Cray has long specialized in traditional vector-style machines with only a few processors, but is moving toward marketing massively parallel processing (MPP) technology, which uses hundreds of processors operating simultaneously. Systems are shipping on schedule, according to Cray officials, and two Energy Department nuclear weapons laboratories have signed preliminary contracts to develop application software jointly with Cray.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Dell sees lagging 4th-quarter results, but says it will resume stock offer plan
Article Abstract:
Dell Computer Corp estimates that 4th qtr 1992 sales were about $615 million, or slightly lower than analysts' mean estimate of $637 million. The company also predicts net income at about 5 percent of sales. That would provide a net income of about 75 or 76 cents per share, just shy of the 77 cents-per-share projection of Zacks Investment Research Inc. Despite the slight dip in expected sales, Dell would show marked improvement over the $285.7 million in sales reported in 4th qtr 1991. Per-share earnings for the 1991 quarter were 62 cents. Dell also announces plans to complete an offering of 4 million shares of common stock, originally scheduled for Dec 1992 but now slated for early Mar 1993. Securities and Exchange Commission staffers have signed off on the offering after looking into a report that Dell may have inflated earnings through a sequence of unusual trades in foreign currencies.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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CompuTrac says it expects to report earnings plunge
Article Abstract:
CompuTrac Inc will report that revenue dropped 51 percent and net income fell 84 percent in the 3rd qtr ended Oct 31, 1989. Declines are attributed to unusually high order cancellations and purchase delays. With a small number of customers, each sale ranging from $350,000 to $400,000, a few cancellations or postponements can make or break a quarter. CompuTrac specializes in turnkey systems and sells software as well. The firm is predicting that the fiscal 4th qtr will be back on track with the rest of the year, with growth reaching 10 percent and more in revenue and net income.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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- Abstracts: IBM shares sink as analysts cut 1992 estimates: stock falls 4.4% after firm paints cautious outlook due to weak economy
- Abstracts: Mips to unveil first personal computers built to meet consortium's specifications. Mips Computer to show model based on RISC
- Abstracts: IBM agrees to sell notebook-sized PCs to Hitachi Ltd. for resale in Japan. Sony to supply Apple Computer with portable PCs
- Abstracts: Prime Computer has plan to go public, halve its debt and shed computer unit. Data General, Prime report major losses