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EARNINGS

Control Data Loss Hits $7.8 Million in Quarter

July 22, 1986|DONNA K. H. WALTERS

Control Data, the giant but struggling computer systems maker, said its losses deepened by $7.8 million in the second quarter, bringing its red ink so far this year to $29 million.

The loss compares to a $4.8-million loss in the second quarter of 1985--a year that the Minneapolis-based company ended up $567.5 million in the red.

Revenue of its computer business during the second quarter ended June 30 was $828.5 million, a 9% decline from the year-ago period.

Control Data said it suffered from weak demand in the U.S. market for its mainframe computers. Other major computer makers, including International Business Machines, also have sustained losses or declining profits as the market remains soft.

Control Data said its net losses in computer operations were $20.3 million, including an $11.7-million charge primarily for restructuring and the closing of its international computer center.

However, the company said its Commercial Credit unit--also restructured and separated from the computer operations during the quarter--was profitable during the three-month period with net earnings of $12.5 million.

Control Data Chairman Robert M. Price noted that the company's results were better than the first quarter of the year. He said: "We still have much to do to improve performance, but the fundamental restructuring of Control Data is responsible for the improved results achieved to date."

The company also said results were "encouraging" in its data-storage business following a refocus of its market strategy.

In the past six months, the company also has sold its Ticketron business unit and announced a $350-million public debt offering to repay its huge bank debt.

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