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Earnings

DEC Posts $433-Million Loss After Charge

July 31, 1996|From Times Wire Services

Digital Equipment Corp., after diminishing investor expectations and announcing a restructuring earlier this month, lived up to its word Tuesday by reporting a loss of $433 million for its fiscal fourth quarter.

The company squeaked out a $59-million profit from operations but then took a $492-million charge for the restructuring, which will eliminate 7,000 jobs.

Digital employed 59,100 at the end of the quarter, down 1,800 from the end of March and down 2,600 from the end of June 1995.

Digital had been hurt by missteps in personal computers as those products became more important to its overall performance. PC revenue was down slightly in the quarter, but executives said the PC business will be growing and profitable again within six months.

The loss amounted to $2.87 per common share. A year ago, Digital earned $160 million, or $1.01 per share, in the same period.

Without the charge, Digital would have earned 33 cents per share. Analysts expected a 36-cent-per-share profit, according to a survey by Zack's Investment Service.

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