Sequoia Systems remains haunted by phantom sales; finger-pointing, restatements follow overzealous booking of orders

Article Abstract:

Sequoia Systems Inc has been plagued by financial restatements, finger-pointing and lowered stocks after a history of phantom sales. In May 1992, for instance, the company forecast sales of $85 million for FY 1992, but then reported them at $71 million in Aug 1992, then restated sales at $65.7 million and now will be restating them again to be even lower. Shareholders are suing the company, and the Securities and Exchange Commission is investigating the company. As a result, the company's stock prices have plummeted to $2.75 as of Oct 1992, down from $18.375 at the same time in 1991. The restatements were necessary because of overly optimistic booking of sales orders, particularly in the case of a large Polish sale that fell through. People are blaming Kent Allen, the former chief financial officer, and Gabriel Fusco, the former CEO, both of whom have since left the company.

Usage, Finance, Company Profile, Sales, Sales forecasting, Financial Stability, Financial Report, Sequoia Systems Inc., SEQS

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Data General board ousts co-founder

Article Abstract:

Data General Corp's board of directors dismisses co-founder Edson de Castro. Mr. de Castro is a pioneer in the computer industry, and for many years he seemed to disprove the saying that 'pioneers are the ones with the arrows in their back.' But with a new generation of entrepreneurs forcing changes, de Castro joins the ranks of the fallen. He says that his leaving is amicable and notes that it was being discussed for some time. The co-founder claims that his biggest mistake was not to put Data General into the microcomputer business at a time when the industry was blossoming in that arena. The Data General board of directors indicates that Castro will resign as chairman on Dec 31, 1990, and will not seek re-election to the board.

Officials and employees, Appointments, resignations and dismissals, Data General, Executive, Strategic Planning, Firings, DGN, De Castro, Edson

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Cray reassigns senior aide to pursue technology to expand computers' use

Article Abstract:

Cray Research Inc will undertake research into an emerging computer technology called 'massively parallel processing.' Cray plans to assign Steve Nelson, a senior researcher, to this work. This is a move in a new direction for Cray, which will continue to develop conventional supercomputers.

Research, Supercomputers, Supercomputer, Cray Research Inc., CYR, Parallel processing, column, Massive Parallelism, Nelson, Steve

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