Mitel bets on an old strength and a new technology; chip division buoys sales as it builds communications-network business

Article Abstract:

Communications equipment maker Mitel is offering integrated voice-data networks, hoping its combination of new products and experience in the telephone systems industry will help it become a market leader. While some analysts are skeptical of combining stable voice lines with notoriously finnicky data networks, Mitel sees the voice-data integration technology as an economical solution for businesses and institutions, especially schools. Mitel's 3rd qtr 1996 sales were up 38% to 173 million Canadian dollars, although net income rose a slight 3% to 11.5 million Canadian dollars. The company relies on its semiconductor operations to not only sustain profits but also provide specialized chips for its telecommunications products. Third-quarter sales of chips accounted for 32% of overall revenue. Mitel recently acquired a Swedish semiconductor business, ABB Hafo AB, to double its production. Mitel's core business has historically been telephone switches, but the company suffered when that market softened in the late 1980s.

Planning, Computer-telephone integration, Computer telephony, Telecommunications equipment industry, Company business planning, Mitel Corp., MLT

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Computer-networking firms expected to post strong fourth-quarter results

Article Abstract:

The computer network equipment industry should post outstanding year-end results, and continue to grow due to strong demand in 1995. The impressive results at the end of 1994 were driven by corporate purchases that were delayed from the summer. New switching technology is also responsible for the hot demand, because computer networks are carrying huge traffic loads. The industry should continue to experience solid growth as the US economy remains strong, and the European economy rebounds. Also, the next technological advance, asynchronous transfer mode (ATM), is just now becoming available. Industry leader Cisco Systems Inc realized $0.39 to $0.40 per share for its 2nd qtr ending in January. Its revenues for the quarter should rise 40% to $425 million over last year's $303.2 million. The 3Com Corp should post revenue increases of 48% to $304.8 million for its 2nd qtr ending Dec 14.

Computer networks, Finance, Cisco Systems Inc., 3Com Corp., CSCO, COMS, Network hubs, Market Analysis, Financial Report, LAN Hub MAU

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Business buyers catch a break with PC prices; average cost is sinking; supply, demand woes plague many markets

Article Abstract:

The declining price of desktop computers in 1998 is benefitting price-conscious corporate customers. Desktop prices plunged 18% during the 1st qtr 1998, according to International Data. This figure represents around three times the rate spanning the 2nd qtr 1998 to the 4th qtr 1998. Street prices for commercial machines have dropped from $2,242 in 1996 to $1,587, International Data added. Compaq triggered much of the change with price reductions and incentives to reduce its inventory, which in turn forced rivals to follow suit. Sharply falling prices for PC components such as monitors, disk drives, memory chips and processors, also have played a role. Price has emerged as a key criterion for corporate buyers, who understand that less expensive machines can complete an average three-year lifecycle as well as more expensive computers.

Electronic computers, Electronic Computer Manufacturing, Computers & Auxiliary Equip, Computer industry, Prices and rates, Forecasts and trends, Industry trend

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