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Text File  |  1992-08-06  |  8KB  |  148 lines
  1. 7-25 DIGITAL REPORTS FOURTH QUARTER EARNINGS
  2.  
  3. Digital Equipment Corporation (NYSE:DEC), today announced earnings for
  4. its fourth quarter and full fiscal year ending June 29, 1991, and for
  5. the second consecutive quarter, posted improved operating results over
  6. the comparable periods of a year ago.
  7.  
  8. Total operating revenues for the quarter were $3,944,859,000 up 17%
  9. from the $3,365,275,000 of a year ago.  For the full fiscal year, total
  10. operating revenues were $13,911,004,000, up 7% from $12,942,523,000
  11. last year.  For the quarter, the Company reported earnings per share of
  12. $1.10, up 62% from a year ago, prior to restructuring charges of $1.1
  13. billion or $8.18 per share.  The periods covered by these charges
  14. include the fourth quarter of fiscal year 1991, and will be initiated
  15. throughout the current fiscal year.  The cost savings benefits from
  16. these actions will increase progressively quarter by quarter.
  17.  
  18. "From the start, we have seen improvements in efficiency grow faster
  19. than any other industry has ever seen, and it has been exciting," noted
  20. Digital President Kenneth H. Olsen.  "However, for the most recent
  21. period of slowdown, the improvements have accelerated, particularly in
  22. the area of semiconductors.  Even though we have had positive revenue
  23. growth through this time, it has not been large enough to absorb the
  24. resulting extra people and space.  It always hurts to downsize, but
  25. that is the cost of improvement and efficiency from design to
  26. manufacture, to marketing, selling, and servicing."
  27.  
  28. "We are encouraged by this quarter's operating results.  The Company
  29. continues to be profitable from current operations and, while pleased
  30. with the progress shown this quarter, we are not satisfied.  We remain
  31. focused on our goals of improved profitability and enhanced shareholder
  32. value.  Our balance sheet remains strong giving us the strength and
  33. flexibility to make the changes necessary to increase market share and
  34. take advantage of any upturn in worldwide economies that may occur,"
  35. Olsen noted.
  36.  
  37. Digital Equipment Corporation, headquartered in Maynard, Massachusetts,
  38. is the leading worldwide supplier of networked computer systems,
  39. software and services.  Digital pioneered and leads the industry in
  40. interactive, distributed and multi-vendor computing.  Digital and its
  41. partners deliver the power to use the best integrated solutions - from
  42. desktop to data center - in open information environments.
  43.  
  44. 7-25 OPERATING RESULTS FOR FOURTH QUARTER
  45.  
  46.                                    FOURTH QUARTER ENDED:
  47.  
  48.                                 JUNE 29,1991      JUNE 30, 1990
  49.  
  50. PRODUCT SALES                 $2,343,195,000      $2,064,687,000
  51. SERVICE & OTHER REVENUES       1,601,664,000       1,300,588,000
  52. TOTAL OPERATING REVENUES       3,944,859,000       3,365,275,000
  53. COST OF PRODUCT SALES          1,113,891,000       1,034,784,000
  54. SERVICE EXPENSE                  910,255,000         784,031,000
  55. TOTAL COST OF SALES            2,024,146,000       1,818,815,000
  56. RESEARCH & ENGINEERING           445,572,000         413,356,000
  57. SELLING
  58.  GENERAL & ADMINISTRATIVE      1,281,016,000       1,056,700,000
  59. RESTRUCTURING CHARGE           1,100,000,000         400,000,000
  60. NET INTEREST (INCOME)/EXPENSE    (16,091,000)        (30,106,000)
  61. INCOME BEFORE INCOME TAXES      (889,784,000)       (293,490,000)
  62. INCOME TAXES                     (18,466,000)        (36,764,000)
  63. NET INCOME                      (871,318,000)       (256,726,000)
  64. AVERAGE NUMBER OF SHARES
  65.  OUTSTANDING                     122,986,814         121,780,226
  66. NET INCOME PER SHARE             $     (7.08)        $     (2.11)
  67. NET INCOME PER SHARE             $      1.10         $       .68
  68. BEFORE  RESTRUCTURING
  69.  
  70.             OPERATING RESULTS FOR THE TWELVE MONTHS ENDED:
  71.  
  72.                                 JUNE 29, 1991     JUNE 30, 1990
  73.  
  74. PRODUCT SALES                  $8,298,515,000     $8,145,491,000
  75. SERVICE & OTHER REVENUES        5,612,489,000      4,797,032,000
  76. TOTAL OPERATING REVENUES       13,911,004,000     12,942,523,000
  77. COST OF PRODUCT SALES           3,905,355,000      3,825,897,000
  78. SERVICE EXPENSE                 3,373,025,000      2,968,529,000
  79. TOTAL COST OF SALES             7,278,380,000      6,794,426,000
  80. RESEARCH & ENGINEERING          1,649,380,000      1,614,423,000
  81. SELLING
  82.  GENERAL & ADMINISTRATIVE       4,471,629,000      3,971,059,000
  83. RESTRUCTURING CHARGE            1,100,000,000        550,000,000
  84. NET INTEREST (INCOME)/EXPENSE     (68,665,000)      (111,374,000)
  85. INCOME BEFORE INCOME TAXES       (519,720,000)       123,989,000
  86. INCOME TAXES                       97,707,000         49,596,000
  87. NET INCOME                       (617,427,000)        74,393,000
  88. AVERAGE NUMBER OF SHARES
  89.  OUTSTANDING                      121,557,705        125,221,526
  90. NET INCOME PER SHARE              $     (5.08)       $       .59
  91. NET INCOME PER SHARE BEFORE       $      3.17        $      4.19
  92.  RESTRUCTURING
  93.  
  94.                              Q4 - FY91
  95.  
  96. PRODUCT SALES...................................   $2,343,195,000
  97. SERVICE AND OTHER REVENUES......................    1,601,664,000
  98. TOTAL OPERATING REVENUES........................    3,944,859,000
  99. COST OF PRODUCT SALES...........................    1,113,891,000
  100. SERVICE EXPENSE.................................      910,255,000
  101. TOTAL COST OF SALES.............................    2,024,146,000
  102.                                 GROSS MARGIN....            48.7%
  103. RESEARCH & ENGINEERING..........................      445,572,000
  104. SG&A (SELLING, GENERAL & ADMINISTRATIVE)........    1,281,016,000
  105. RESTRUCTURING CHARGE............................    1,100,000,000
  106. OPERATING INCOME................................     (905,875,000)
  107.                             OPERATING MARGIN....             -23%
  108. INTEREST INCOME.................................      (26,188,000)
  109. INTEREST EXPENSE................................       10,097,000
  110. INCOME BEFORE INCOME TAXES......................     (889,784,000)
  111.                                 PRE-TAX MARGIN..           -22.6%
  112. TAXES (TOTAL FEDERAL, STATE & FOREIGN)..........      (18,466,000)
  113.                        EFFECTIVE TAX RATE.......             2.1%
  114. NET INCOME......................................     (871,318,000)
  115. EPS.............................................            (7.08)
  116. AVERAGE SHARES OUTSTANDING......................      122,986,814
  117.  
  118.                 BALANCE SHEET/CASH FLOWS - Q4 FY91
  119.  
  120. CASH & CASH INVESTMENTS.........................   $1,924,050,000
  121. ACCOUNTS RECEIVABLE (NET).......................    3,316,677,000
  122. (RE:  A.R. DAYS SALES OUTSTANDING)..............       76    days
  123. INVENTORIES:   RAW MATERIALS........ 360,367,000
  124.                WORK IN PROCESS...... 501,394,000
  125.                FINISHED GOODS....... 733,389,000
  126.                         TOTAL INVENTORIES          $1,595,150,000
  127. PREPAID EXPENSES................................      395,478,000
  128. DEFERRED INCOME TAX CHARGES, NET................      576,476,000
  129. TOTAL CURRENT ASSETS............................    7,807,831,000
  130. NET PROPERTY, PLANT & EQUIPMENT.................    3,777,830,000
  131. TOTAL ASSETS....................................   12,028,494,000
  132. SHORT TERM DEBT PLUS CURRENT PORTION OF LTD.....       23,344,000
  133. TOTAL CURRENT LIABILITIES.......................    4,209,641,000
  134. DEFERRED TAX CREDITS NET........................       45,010,000
  135. LONG TERM DEBT..................................      150,004,000
  136. TOTAL LIABILITIES...............................    4,404,655,000
  137. STOCKHOLDER'S EQUITY............................    7,623,839,000
  138. BOOK VALUE PER SHARE............................         $  61.18
  139. CAPITAL SPENDING (ADDITION TO PP&E) - QTR.......      191,590,000
  140. CAPITAL SPENDING (ADDITION TO PP&E) - YEAR......      737,548,000
  141. DEPRECIATION & AMORTIZATION ....... - QTR.......      226,930,000
  142. DEPRECIATION & AMORTIZATION ....... - YEAR......      828,560,000
  143. NON U.S. REVENUES ................. - QTR.......    2,494,756,000
  144.                                                  or           63%
  145. NON U.S. REVENUES ................. - YEAR......    8,379,935,000
  146.                                                  or           60%
  147. TOTAL EMPLOYEE POPULATION APPROXIMATELY.........          121,000
  148.