Conference 7.286::digital

	Q3 financial results from Livewire


     Following are Digital's operating results for Q3 which were released 
     to the public today at 2 p.m. (Eastern Daylight Time).  Given all of 
     the circumstances, the company felt it important to release its 
     quarterly results earlier than originally anticipated.

               Digital reports third quarter operating results 

  For the quarter, the company reported total operating revenues of 
  $3,252,514,000, down 8 percent from the $3,520,358,000 of the comparable 
  quarter a year ago.  The company reported a net loss for the quarter of 
  ($294,111,000), compared with net income of $116,573,000 for the comparable 
  quarter a year ago.  Per share results for the quarter were ($2.36) versus 
  $.94 last year.

  For the nine months ending March 28, 1992, the company reported total 
  operating revenues of $10,025,088,000, up 1 percent from the $9,966,145,000 
  of the comparable period a year ago.  Net loss for the nine months was 
  ($403,858,000), versus $253,891,000 net income for the comparable period a 
  year ago.  Per share results were ($3.24) versus $2.06 last year.

  The revenue shortfall was due in part, to the persistent worldwide economic 
  slowdown especially in Europe and Japan, the negative impact of currency 
  movements and pricing pressure.  Larger corporations have, in general, cut 
  back on capital expenditures because of the weak economic environment and 
  this has had an impact on a large part of the Company's business.  While the 
  company has done very well selling PCs, workstations and other low-end 
  products, it is still a supplier of more complex, sophisticated solutions to 
  large companies.
 
  Product margins declined due principally to lower than anticipated volumes.  
  Additionally, with the success of the company's PC direct-marketing efforts 
  and new, low-cost workstations, the company has seen a continued shift to 
  low-end, lower margin products.  The company experienced sharp overall unit 
  growth versus a year ago as it continued to sell more computer systems and 
  even more computing power.  However, advances in technology and competitive 
  pricing pressures offset this growth.

  Jack Smith, senior vice president for Operations said, "While we are very 
  disappointed with the quarter's results, we remain confident in our strategy 
  and overall direction as we continue to introduce leading new technologies 
  and to penetrate new markets.  The recently announced Alpha program is being 
  widely hailed by customers as the leading price/performance architecture 
  on the market today.  Later this month DECWORLD will begin in Boston where 
  more than 25,000 customers will see our current hardware, software and 
  services as well as our future directions and technology migration strategy.

  "In addition, our sales organization has made significant inroads into 
  fast-growing sectors such as pharmaceuticals, health care and 
  telecommunications, as well as the personal computer and small business 
  markets.  Similarly, we continue to see good growth on the services side for 
  systems integration and desktop services.  We intend to maintain this 
  momentum as well.

  "On the cost side, our efforts have accelerated in the past quarter.  Since 
  restructuring efforts were initiated, total occupied space will have declined 
  by 7.3 million square feet by the end of the fiscal year.  Overall employee 
  headcount declined by an additional 3,500 in the quarter, bringing total 
  worldwide headcount net of acquisitions, from a high of 126,000 to 106,000. 
  We also announced a special early retirement program in the U.S. which is 
  expected to reduce employee headcount even further.

  "We will continue to pursue aggressively our restructuring efforts to achieve 
  additional cost reductions across all functions and geographies," Smith 
  concluded.  "As a result, the company is evaluating the need for an additional
  restructuring charge in the fourth quarter ending in June, to cover the cost 
  of continuing these efforts.  Looking out over the remainder of this fiscal 
  year and the first half of next year, we remain cautious about both revenues 
  and profits due to the uncertainties in both the industry and worldwide 
  economies."
 
    				       THREE MONTHS ENDED
    				 MARCH 28, 1992	  MARCH 30, 1991

PRODUCT SALES			  1,750,448,000	  2,100,437,000
SERVICE & OTHER REVENUES	  1,502,066,000	  1,419,921,000
TOTAL OPERATING REVENUES	  3,252,514,000	  3,520,358,000
COST OF PRODUCT SALES		  1,020,083,000	    989,372,000
SERVICE EXPENSE			    956,308,000	    860,405,000
TOTAL COST OF SALES		  1,976,391,000	  1,849,777,000
RESEARCH & ENGINEERING		    429,000,000	    397,999,000
SELLING
 GENERAL & ADMINISTRATIVE	  1,132,780,000	  1,100,980,000
NET INTEREST (INCOME)/EXPENSE	    (11,546,000)     (7,742,000)
INCOME BEFORE INCOME TAXES	   (274,111,000)    179,344,000
INCOME TAXES			     20,000,000      62,771,000
NET INCOME			   (294,111,000)    116,573,000
AVERAGE NUMBER OF SHARES
 OUTSTANDING			    124,671,305	    124,140,995
NET INCOME PER SHARE		       $  (2.36)      $     .94

    				        NINE MONTHS ENDED
    				  MARCH 28, 1992  MARCH 30, 1991

PRODUCT SALES			   5,552,684,000  5,955,320,000
SERVICE & OTHER REVENUES	   4,472,404,000  4,010,825,000
TOTAL OPERATING REVENUES	  10,025,088,000  9,966,145,000
COST OF PRODUCT SALES		   3,020,558,000  2,791,464,000
SERVICE EXPENSE                    2,783,437,000  2,462,770,000
TOTAL COST OF SALES		   5,803,995,000  5,254,234,000
RESEARCH & ENGINEERING		   1,257,665,000  1,203,808,000
SELLING
 GENERAL & ADMINISTRATIVE	   3,360,008,000  3,190,613,000
NET INTEREST (INCOME)/EXPENSE        (43,876,000)   (52,574,000)
INCOME BEFORE INCOME TAXES	    (352,704,000)   370,064,000
INCOME TAXES			      51,154,000    116,173,000
NET INCOME			    (403,858,000)   253,891,000
AVERAGE NUMBER OF SHARES
 OUTSTANDING			     124,588,374    123,080,647
NET INCOME PER SHARE		        $  (3.24)     $    2.06

                            Q3 - FY 92

PRODUCT SALES ........................... DLRS  1,750,448,000  	        
SERVICE AND OTHER REVENUES...............       1,502,066,000                 
TOTAL OPERATING REVENUES.................       3,252,514,000    
COST OF PRODUCT SALES....................       1,020,083,000
SERVICE EXPENSE..........................         956,308,000
TOTAL COST OF SALES......................       1,976,391,000    
                         GROSS MARGIN                    39.2%    
RESEARCH & ENGINEERING................... DLRS    429,000,000  	          
SG&A (SELLING, GENERAL & ADMINISTRATION).       1,132,780,000       
OPERATING INCOME/(LOSS)..................        (285,657,000)        
                                OPERATING MARGIN        ---- 
INTEREST INCOME.......................... DLRS    (16,846,000)
INTEREST EXPENSE.........................           5,300,000
INCOME/(LOSS) BEFORE INCOME TAXES........        (274,111,000)
                                PRE-TAX MARGIN          ----
TAXES (TOTAL FEDERAL, STATE AND FOREIGN).          20,000,000                  
                           EFFECTIVE TAX RATE             7.3%               
NET INCOME/(LOSS)........................ DLRS   (294,111,000)
EPS......................................               (2.36)
AVERAGE SHARES OUTSTANDING...............         124,671,305


                     BALANCE SHEET - Q3 FY92

CASH & CASH EQUIVALENTS.................. DLRS  1,547,355,000
ACCOUNTS RECEIVABLE (NET)................       3,158,286,000     
(RE:  A.R. DAYS SALES OUTSTANDING)                    87 DAYS

INVENTORIES:  RAW MATERIALS......... 309,999,000
              WORK IN PROCESS....... 576,945,000 
              FINISHED GOODS........ 937,490,000  
                       
                       TOTAL............. DLRS  1,824,434,000 
PREPAID EXPENSES.........................         397,435,000        
DEFERRED INCOME TAX CHARGES, NET.........         427,700,000     
TOTAL CURRENT ASSETS.....................       7,355,210,000
NET PROPERTY, PLANT & EQUIPMENT..........       3,609,501,000
TOTAL ASSETS.............................      11,540,571,000
SHORT TERM DEBT & CURRENT PORTION OF LTD.          39,344,000	 
TOTAL CURRENT LIABILITIES................       4,278,874,000
DEFERRED TAX CREDITS NET.................          14,600,000
LONG TERM DEBT...........................          43,734,000
TOTAL LIABILITIES........................       4,337,208,000
STOCKHOLDER'S EQUITY.....................       7,203,363,000
BOOK VALUE PER SHARE.....................               57.73  
CAPITAL SPENDING (ADDITION TO PP&E)......         157,530,000
DEPRECIATION & AMORTIZATION..............         224,006,000
NON U.S. REVENUES - QTR..................       2,025,551,000       
                                                      or   62%                 
NON U.S. REVENUES - YTD..................       6,319,100,000
                                                      or   63%
TOTAL EMPLOYEE POPULATION APPROXIMATELY..             116,000

    Oh my God!!  ...... that rumbling sound you hear is the bloated Greater
    Maynard Good Old Boys Bureaucratic Anus-protectus, Marching and Chowder
    Society running for cover.
    
    TFSO anyone?

    DEC dropped 6 points between 3 an 4 pm today!
    (54.25 to close at 48.25)

>                   -< Wang is Starting to Look Well-Managed >-
>
>    Oh my God!!  ...... that rumbling sound you hear is the bloated Greater
>    Maynard Good Old Boys Bureaucratic Anus-protectus, Marching and Chowder
>    Society running for cover.
>    
>    TFSO anyone?


	Aw, shucks, Dick. What's a quarter billion in one quarter
	amongst friends ?

	Sheesh, you'd think there was a problem, or something.

	After all, since we're spending tens of thousands on 
	"The Healing Forest", there can't be a problem with money !

	Steve H

    Don't worry, my friend told me that DEC stock won't ever drop
    below $68, the book value!

    They just announced that the NIKKI dropped back to leave the stock
    value of companies there about where they were about 6 years ago..

    Scary stuff.
    Jon

    Why do I feel like we're all trapped in an unending nightmare ....

    Nuts ...

From:	BSS::ICS::CISMAIL "Computer Industry News  09-Apr-1992 1704"  9-APR-1992 
15:11:39.85
To:	@MISG_NEWS
CC:	
Subj:	*** MISG NEWS FLASH *** DEC RESULTS



STOCK                ASKED
                    OPEN      HIGH      LOW       LAST      VOL(100'S)
DEC                 53        54 7/8    47 1/4    48 1/4    16139

04/09 (DJ) Digital Equipment Results -2-: 3rd Qtr Financial Table

     3rd Quar March 28:
                        1992            1991
  Revenues        $3,252,514,000  $3,520,358,000
  Net income        (294,111,000)    116,573,000
  Avg shrs (primary) 124,671,305     124,140,995
  Shr earns (primary)
   Net income              (2.36)       .94
    Figures in brackets are losses.

     9 Months March 28:
                        1992            1991
  Revenues       $10,025,088,000  $9,966,145,000
  Net income        (403,858,000)    253,891,000
  Avg shrs (primary) 124,588,374     123,080,647
  Shr earns (primary)
   Net income              (3.24)       2.06
    Figures in brackets are losses.

    John F. Smith, Digital Equipment Corp.'s senior vice president for
operations, said, ''While we are very disappointed with the quarter's
results, we remain confident in our strategy and overall direction as we
continue to introduce leading new technologies and to penetrate new
markets.''
    ''We will continue to pursue aggressively our restructuring efforts
to achieve additional cost reductions across all functions and
gepgraphies,'' he said.
    ''As a result, the company is evaluating the need for an additional
restructuring charge in the fourth quarter ending in June, to cover the
cost of continuing these efforts.  Looking out over the remainder of
this fiscal year and the first half of next year, we remain cautious
about both revenues and profits due to the uncertainities in both the
industry and worldwide economies,'' he said.

04/09 (DJ) Digital Equipment -2-: Job Cuts May Be Deeper Than 10,000

    MAYNARD, Mass. -DJ- Digital Equipment Corp. senior vice president
John F. Smith said the company will reinstate a program of layoffs in
May.
    In a conference call, he declined to say how many people would be
affected.  In the past, executives have said they expect to cut as many
as 10,000 people from the work force in the fiscal year ending June 30. 
But Smith seemed to indicate the company would have to cut more deeply.
    He said that a previsouly reported early retirement program was
running ahead of expectations.  More than 7,000 people are eligible for
the program, Digital's first.
    Smith also said the effect of unfavorable currency translations for
foreign sales cut revenue by $150 million to $200 million.  He said
third quarter revenues fell about 17 pc in Europe and about 10 pc in the
United States compared with the year-ago quarter.

   Digital Equipment Reports Loss      
     Of $294.1 Million In Quarter      
                 ---
    Digital Equipment Thursday reported
a loss for its third quarter of
$294.1 million, or $2.36 a share.
    The figures appear to be well below
expectations.
    As of April 4, analysts surveyed by
Zacks Investment Research had a wide
range of forecasts, ranging from a gain
of 5 cents a share to a loss of $1.15.
The mean estimate was for a loss of 61
cents a share.
   

BUSINESS 4/9/92           PAGE  2 OF  3

    In the year-ago quarter, Digital
earned $116.6 million, or 94 cents a
share.
    The computer giant's revenue
dropped by about 8% to $3.25 billion.
    Digital attributed the revenue
shortfall in part to world-wide
economic weakness, particularly in
Europe and Japan.
    The company also cited the negative
impact of currency movements and
pricing pressures.
 
 
   

BUSINESS 4/9/92           PAGE  3 OF  3

    Digital also said its product
margins declined, mostly because of
lower-than-anticipated volumes. It also
said it is evaulating the need for an
additional restructuring charge.
    It said it ''remained cautious''
about its sales and profits outlook.
                *  *  *
    - Enter //WIRES DEC for company
news, //WIRES N/ERN for earnings news.
    - Enter //QUICK DEC for current
stock price and company profile.
    - Earnings estimates available in
//EPS and //WIRES N/ERP.   //wires

                     DOW JONES BUSINESS NEWSWIRES        
              Copyright (C) 1992 Dow Jones & Company, Inc. 

Enter a symbol or a code to get news and releases from seven newswires.

Enter /C (Return) to search by company name or to search for a category
code by its description.

---------------------------------------------------------
To limit your search by newswire group: 
ENTER  FOR                              
  1   Articles from all five Dow Jones newswires
  2   Press releases from PR Newswire, Business Wire and 
      Canada NewsWire
{dec}------------------------------------------------------


To continuously display articles, enter PRINT and the article numbers.
For example, PRINT 1,3,6-9 (Return).

ENTER REQUEST, OR PRESS (RETURN) FOR INSTRUCTIONS AND A LIST OF CODES.
   
BUSINESS NEWSWIRES - DEC                              HEADLINE PAGE  1

  1  DJ 16:36 Digital Equipment -2-: Job Cuts May Be Deeper Than 10,000
  2  DJ 15:40 *Digital Says 3Q Europe Revs Dn 17 PC, U.S. Revs Dn 10 PC
  3  DJ 15:37 *Digital Equipment Says Early Retirements Ahead Of Plan
  4  DJ 15:36 *Digital Says Currency Impact On Revenues In 3Q $150M-$200M
  5  DJ 15:35 *Digital Equip Sees 'More Aggressive' Work Force Cuts
  6  PI 15:31 Digital Equip (DEC) P-Alert: - 3 7/8 on 748,800 - NEWS
  7  DJ 15:29 *Digital Equipment (DEC) Resumed Trading
  8  PR 15:25 DIGITAL EQUIPMENT CORPORATION REPORTS THIRD QUARTER OPERATING...
  9  DJ 15:18 Digital Equipment (DEC) Ind. 49 - 51. Last 54 1/4
 10  DJ 15:16 *Digital Equipment (DEC) Ind. 50 - 52. Last 54 1/4
 11  BW 15:04 Digital Equipment reports third quarter operating results
 12  DJ 15:02 *Digital Equipment (DEC) Ind. 50 - 53. Last 54 1/4
 13  DJ 14:58 Digital Equipment -4-: Commentary On Results
 14  DJ 14:52 *Digital Equipment Mulling Added Restructuring Chg In 4Q
 15  DJ 14:52 *Digital Equipment (DEC) Ind. 52 - 54. Last 54 1/4
 16  DJ 14:38 Digital Equipment -3-: Nine Months Financial Table
 17  PI 14:26 (DEC) Earnings Alert: 3Q ($2.36); First Call Mean (66C)
 18  DJ 14:25 Digital Equipment Results -2-: 3rd Qtr Financial Table
------------------------------------------------------------------------------
SELECT STORY, ENTER PRINT COMMAND OR PRESS (RETURN) FOR MORE HEADLINES.
   

    According to a partial news story tonite on either CNBC or CNN, the
    next round of layoffs will start May 1.

    > Given all the circumstances, the company felt it important to
    > release its quarterly results earlier than originally anticipated.
    
    (1) So just _how_ early are these results?  1 or 2 weeks?  It isn't
    possible to close a quarter early, is it?  I'd expect not.  Altho I'm
    impressed that we can close, calc and report in 9 days.
    
    (2) Is it possible that "the circumstances" include DECworld '92? 
    Along the lines of get the bad news out early and get it forgotten
    before the year's big marketing event that's supposed to signal the
    beginning of the turnaround?  That would seem like a good theory.

    Hey folks, look on the bright side, stock is down. Increase your ESPP
    quota, Buy stock until it hurts, and then tell the Board how to run the
    company...
    
    q
    

    In Jack Smith's text it states the employee headcount declined to
    106,000, but in the numbers reported, it shows 116,000.  Anyone guess
    which is correct?
    
    Mark
    
    

The last one is correct. The second will be correct at the end of may....    
    

    re .11
    
    According to the story in the Boston Globe this morning, the results
    were released about a week earlier than usual.  So normally we would
    have reported the results towards the end of next week.
    
    /Dave

    Let's see, divide number of outstanding shares by number of employees;
    that's about 1,250 shares per employee.  (How many employees do we have
    nowadays?)  At $48 per share, that's $60,000 per employee, still a bit
    much for an employee takeover.  Or would it be only $30,000, so that
    employees would own a majority of shares?  How many shares are already
    owned by employees?
    
    
    				-- edp

    
    Livewire reported that senior mgmt was considering taking a
    restructuring charge in June for more cost reductions. ie...
    Layoffs. I have a feeling it's going to be fairly large considering
    we're losing money like there's no tomorrow. imho
    
    Mark

    In the usual quarter end scenario, those of us at the FMC's would still 
    be answering questions about fluctuations from last quarter to this or 
    to the same quarter last year on W2D4. Scoresheet adjustments are usually
    made by high level management on W2D5. This quarter was not closed early; 
    all numbers were reported to corporate on the usual calendar. They
    didn't get the final input from each FMC until W2D2 in the early
    afternoon. 
    
    I can only think that it was so bad that waiting until the usual W3D4
    release would only have caused leaks and speculation in the press -- 
    potentially more damaging than just getting the bad news out.
    
    
    Linda

    re: .14
    
    that figure is not including acquisitions...this is most likely
    where the difference is...
    

Hmm.

Big "restructuring expense" for the last FY due, they say, to getting rid of a
bunch of people.  Then I read the numbers on this quarter end, and I see expenses
are up considerably compared against Q391.  At least up by a percentage greater
that any pay raise most of us have seen.

So, the question is:

1) If employees are our biggest expense
2) We spent a ton of money last year to get rid of a bunch of employees

then why are our expenses so much higher this year?

Oh, nevermind.

    For this upcoming lay-off session...when will they take nominations?
    
    (Let's do it right, this time!))
    
    

    re-1, logic would say "yes"....that they would finally wise up and
    institute a voluntary departure program.  But, then, I haven't seen
    any logic around here in the past two years.
      

    Re: Note 1842.23 by PBST::LENNARD
    
>   re-1, logic would say "yes"....that they would finally wise up and
>   institute a voluntary departure program.  But, then, I haven't seen
>   any logic around here in the past two years.

    Sounded to me like .22 wanted to NOMINATE certain other persons for the
    "package", not to VOLUNTEER for it, but then I could have gotten it
    wrong. Now there's an interesting concept...

    Nope.  There's a brillant new plan.  Every one in the company gets
    10 points.  You can give the points to anyone, including yourself
    for protection, or use any of them to detract from anothers points.
    So if you shoot 5 points off someone who give themselves 5 points
    the net effect is 0.
    
    Anyone going to -20 is a layoff canidate.
    
    
    
    Then anyone who assigns all 10 point to their own protection is fired.
    
    -kevin
    

    So X and Y get together and exchange points, right?

In preparing to file my annual dues to the US Government, i.e. income taxes
(yes DEC does occasionally pays us!). I have come accross an interesting 
question.. 

Any help would be appreciated.

Question:  In light of Digital's recent announcements to Wall Street,
           I would like to know if my unreimbursed business expenses 
           should be catagorized as a charitable contribution to a
           non-profit organization.  If so, does anyone know Digital's
           tax exempt number for my paper work?

            :-)

    I was going thru a set of PATHWORKS SW and Docsets yesterday and found
    amongst the shrinkwrapped books and discs and tapes and READ ME FIRSTs
    -- each neatly printed with its part number -- a piece of cardboard
    about 4"x7", printed with its own part number, and shrinkwrapped. 
    Since someone else had previously removed all the aforementioned
    goodies from their presumed original Meta-Shrink-Wrap, I can only
    surmise that the function of this numbered shrinkwrapped cardboard was
    to act as some sort of buffer, perhaps between tapes.  
    
    Thinking more charitably:  Perhaps the extremely high density of
    client-server niftiness represented by all that PATHWORKS SW in a small
    space required the cardboard's presence to separate it juuuust enough
    to keep it from achieving critical mass...?
    
    That'd be the only reason *I* could think of, to keep lawsuits (from the
    families of exploded system administrators) far away from DEC's door.
    
    So I stuck the shrinkwrapped DEC-Part-Numbered cardboard on my 
    department's bulletin board with a little note saying:
    
               A Very Tiny Part of DIGITAL's $290M loss in Q3
    
(-: Of course, I overstate the case here; PATHWORKS and PCSG were among the few 
                     bright spots in the quarter... :-)

    Are we (DEC) really owed $3.15 billion for goods/services delivered but
    not paid for? Does it really take 87 days on average to get money from
    our "customers" - if that's the word to use for people we give
    interest free loans to?
    
    Boy, if I owe even a small amount to some firms they suggest a big man
    named George is going to visit me at some unspecified time to discuss
    my situation.
    
    What's going on!

    Is it just me, or does anyone else get the distinct impression that
    our management could muck up a spontaneous nocturnal emission?

    Jamie.

        Re: .29
        
>    Are we (DEC) really owed $3.15 billion for goods/services delivered but
>    not paid for? Does it really take 87 days on average to get money from
>    our "customers" - if that's the word to use for people we give
>    interest free loans to?
        
        Take a look at 1822.109.  I assume that the PC described
        accounts for part of the $3.15 billion (at least I hope they
        haven't paid) -- and I wouldn't call it an `interest free loan'. 
        It is often DEC's fault when bills aren't paid promptly.
        
        					B.J.

    Back in the old days, an "emergency" would have been declared long ago.
    I just don't see the strong management emphasis on prevention &
    get-well plans.  Maybe there is a lot of churning, but I just don't see
    or feel it; I just get the feeling we're resigned to this situation.
    
    On the radio last Friday am, Mark Steinkraus (sp?) was quoted as saying 
    that expectations are that DEC will return to profitability sometime in
    calendar year 1993.  I take that to mean we have 3-4 more bad quarters
    to go before we turn things around substantially.
    
    

    Re -1....don't bet any money (or stock) on it happening that soon, or
    ever. Without fundamental, gut-wrenching change, including wholesale
    slaughter at the higher levels of the company, it ain't gonna happen.
                 

    
    	I read an interesting article yesterday (it was either in the
    Sunday Nashua Telegraph or Saturday's New York Times if you want to
    look it up) about some Japanese companies that are losing money and how
    they are reacting to it.  At one large company (I forget which one),
    *all* of the upper management folks are walking around with a formal
    letter of resignation in their breast pocket as a symbol of their
    understanding that they have to turn the situation around or else face
    the consequences.
    
    								-craig

    
    Re .34:
    
    Well, our upper management folks walk around with formal letters in
    their breast pockets, too...
    
    
    
    
        of course, they're all pink and have other peoples names on 'em.
    

The article on Japanese executives was in Sunday's New York Times. 
The executives also took pay cuts of up to 35% of their base pay.

>================================================================================
>Note 1842.35                   DEC Q3 FY92 Results                      35 of 35
>WLDBIL::KILGORE "DCU -- I'm making REAL CHOICES"     11 lines  13-APR-1992 12:31
>--------------------------------------------------------------------------------
>    
>        of course, they're all pink and have other peoples names on 'em.

Maybe the letters should be Scarlet.  :-(  Sorry, Mr. Hawthorne.

                          
    Re: .34, .35, .36, .37
    
    I don't foresee this will happen in this country, no matter which 
    industry you are talking about, whether it's auto. computer, defense,
    or entertainment. We all read recent news regarding the overpay of auto
    executive after the trip to Japan by President Bush, even big three has
    been in red for yrs. Will anyone bet how our top management willing to
    salary/bonus/stock_options freeze after latest loss of 294 millions ? 
    
    Didn't all those prestigious MBA school in U.S teach our management
    to-be that money and their job security is more important than
    company's future ?  :-)  Pls, questions all those Harvard MBA, why
    they spend 20K/yr to invest firsthand ?
    
    Folks, this is called capitalism. Greed and personal interest is
    flooding in our society system. 
    
    Sigh for the long run,
    
    Michael...

    Interesting article in this week's Business Week on Page 36.
    
    Digital-
    "It's market value has dropped by $19 billion in four years, executives
    are bailing out, and despite a recent shakeup, Digital Equipment Corp.
    suffered its first ever operating loss in the December quarter: A $147
    million whopper. That doesn't seem to faze DEC founder and President
    Kenneth H. Olsen. He hasn't replaced the chief financial officer who
    left in December, and he dismisses the other departed executives as
    people who simply aren't team players.
    
    "But don't look for any action by the board of the $14 billion
    minicomputer maker. Olsen, 66, may be the board's only insider, but he
    hand picks its members. Directors include his college mentor and the
    retired executives of two companies where Olsen is a director. He
    refuses to establish a succession plan and last year chastised a board
    member who advocated one. Says Sherwood Securities Corp. analyst
    Stephen B. Dube: "To me, there's an inertia there." DEC insists that
    its board is pretty strong.
    
    

    My wife and I were talking last night about why you can still go almost
    anywhere in this country and find that most people never heard of DEC.
    I mean, in East Armpit, Idaho, CDC, NCR, Apple, etc., are all familiar
    names......but not Digital Equipment Corporation!  We kinda agreed that
    "Digital Equipment Corporation" is a content-free, uninspiring,
    vanilla-flavor name.  It's not clear to the neophyte what business
    we are even in.  "Digital" to most people means watches, and to a few
    something to do with numbers.  Most farm equipment and heavy equipment
    companies have "Equipment" in their names.  No wonder!!
    
    I'm serious now.  If you could rename DEC, what would it be?  I'll
    start the bidding with:
    
                 "OPENSYS"  (I know it's silly, but it's a beginning)
    
    

    Last time I went through this, the company I worked for went from
    "Burroughs" (= two or more donkeys in any Spanish speaking country) to
    "Unisys" (blech!) with a slogan like "the power of 2" or some such
    nonsense.
    
    And look what happened to them!
    
    This was just after spending $$millions to change their logo from the
    old Burroughs "B" to something that looked like rail tracks and which
    nobody understood!
    
    Mike

    How the company could have been saved:
    
    2 years back.  No lay offs.
    
    Vice Presidents and above.
     Forfeited all pay except $50,000 a year to live on.  This will make
    them react faster and do it right, or they left company.
    
    Management below Vice President take pay cuts to top pay of their
    top worker.
    
    Workers below management: take pay cuts to bring salary's at no higher
    then $40,000 a year.
    
    Workers with pay at $25000 and below no change.
    
    
    Now those that can not handle it would leave for greener pastures and
    good luck.
    
    All employees would get a bonus on profits from company if made to be
    determained by pay at time of down grade.
    
    All MBAs must look for work outside company.
    
    Oh well,  I can dream.  I will just dream.  No one has guts any more
    and so they can not get the glory that goes with guts.
    
    Bob

re .44:

That would have been a sure way to get rid of all engineering talent in
the company.

    re:44
    	I'll bet you've been with the company 20+ years and can remember
    when everyone felt that DEC was their own company.(Including engineers)
    
    John

    Maybe we can now claim the discount for non-profit organizations when
    buying stuff from other companies?
    
    
    � :-)