Conference 7.286::digital

	I didn't think they came out till the third Thursday after the close
	
	Or there abouts.....

	Heathger

Hi,


	Why when we have all these hi-tech integrated
financial systems with live links and fibre optic etc...
does it take this long to workout if we made it or not?

	When Wall St. crashes or slumps etc...the news 
firms are always able to calculate the losses the same 
night! Perhaps they have something we don't!

-Trev

    It is my understanding that we can close our books within 3 days.  That
    is the fastest close in the Fortune 100 or so (meaning big business). 
    The rest of the time is in the verification, announcement timing, etc.
    
    We can do it faster, but we don't.
    
    For what its worth,
    
    Jack Boyle

>	Why when we have all these hi-tech integrated
>financial systems with live links and fibre optic etc...
>does it take this long to workout if we made it or not?

	Okay, I'll bite, what hi-tech systems?


	First you close mumble number of systems (some of which are over 13 
	years old), you then do all the reporting then you check the reports 
	befor sending the feeders to Europe.

	Then do all the amalgamation, do the reporting, check the repoorts, 
	and send the feeders to the US.

	then do all the amalgamation, do the reporting, check the reports and
	issue the stuff to Wall Street.


	Heather

Plus this year only closed on Friday and then we had a three day weekend
in the states.  So we're only on day 2 of the 3 days mentioned in a
previous reply.

    
    The year actually only ended at midnight Saturday night, we
    were building product up until then.  Closing of the books
    can only start after that.  Manufacturing had a two day
    weekend, Sunday and Monday except for the people who support
    the systems such as Maxim which contain all the data that
    needs to be rolled up from the plant.

    Plus, because it is year-end, the numbers must be audited and signed by 
    Coopers and Lybrand before release. 
    
    

OUTLOOK BRIGHTENS FOR DIGITAL 

  NEWS OF ITS FIRST PROFIT IN 9 QUARTERS IS EXPECTED THIS MONTH. 

By GLENN RIFKIN 
New York Times 

MAYNARD, Mass. -- Philip Caldwell, former chairman of Ford Motor Co. and a 
longtime director of Digital Equipment Corp., recalls the moment a few 
weeks ago when he felt a rare surge of confidence in the computer maker's 
future.

It was at a June 17 board meeting, and Digital's directors had just heard 
executives' detailed plans for the reorganization of a company that lost 
$2.8 billion in fiscal 1992.

``I just started clapping my hands,'' Caldwell said. Soon, all the 
directors were standing and applauding with him. ``It was a complete plan 
presented by those committing to execute the plan in a thoughtful, 
articulate way,'' he said. ``The sum total gave us all a very positive 
feeling.''

Many analysts and customers also are feeling more positive these days 
about Digital, which is expected to report later this month its first 
profit -- albeit slim -- in nine quarters.

Few are ready to predict that Digital can relive the glory days of the 
1980s. But many praise the turnaround efforts of Digital's president and 
chief executive, Robert B. Palmer, who began running the company one year 
ago.

The euphoric atmosphere at last month's board meeting was in sharp 
contrast to one in June 1992. Then, Caldwell and other directors angrily 
criticized Kenneth H. Olsen, Digital's founder and president, accusing him 
of running the $14 billion computer maker aground.

The next month, the board insisted on Olsen's resignation.

The board made Palmer, then head of manufacturing, the de facto head of 
Digital, although he was not officially named president and chief 
executive until Oct. 1, when Olsen retired.

Palmer, an urbane, 52-year-old Texan, wasted little time in accelerating 
deep cuts in costs. The company has had mass layoffs, totaling nearly 
20,000 in the last year, which have reduced Digital's worldwide employment 
to less than 95,000.

He has attracted new talent -- like IBM's former marketing czar, Edward E. 
Lucente -- to revitalize Digital's home-grown executive ranks. And Palmer 
has stepped up the introduction of the Alpha line of computers, which the 
company sees as its flagship of the future.

Most important for investors, Palmer has pressed Digital to return to 
profitability -- no easy task for a company that has lost a total of $3.5 
billion in less than three years.

Analysts are expecting a small profit for Digital's fourth quarter, which 
ended July 2. It would be the company's first quarterly profit since March 
1991.

Palmer is looking to fiscal 1994 as the crucial year when the company -- 
reorganized into nine units devoted to specific product categories like 
personal computers or industry segments like health care -- implements its 
plan for the future.

``I haven't seen any company with the magnitude of the decline of Digital 
turn it around,'' Palmer said in a recent interview. ``Is it too late for 
Digital? No, it's not too late at all. But it's not going to happen in 
five minutes.''

But even while praising Palmer, many analysts remain reluctant to call 
Digital's turnaround complete.

``The jury is still out,'' said William J. Milton Jr., an analyst at Brown 
Brothers Harriman & Co. ``This company has not demonstrated it can 
generate revenue growth or stabilize gross profit margins.''

Digital faces continued pressure in important European markets like 
Germany. And inside Digital, where employees are acutely aware that an 
additional 5,000 to 10,000 layoffs are in the offing, tensions remain high.

Digital stock, while above its 52-week low of $30.38 in December, has been 
meandering lately. The company's shares closed at $38.50 Thursday, down 75 
cents, on the New York Stock Exchange.

Digital is shifting from its hugely successful but aging VAX line of 
minicomputers and workstations to new powerful systems based on its Alpha 
microprocessor, a 64-bit chip that uses the increasingly popular 
technology known as RISC, or reduced instruction-set computing.

Digital has bet heavily on its Alpha-based personal computers and 
Microsoft Corp.'s new Windows NT software operating system to spark 
revenue growth.

Many analysts consider that the NT software is more likely to be used with 
computers based on Intel Corp.'s chips than with computers on 
Alpha-powered systems. Palmer, however, says such predictions are 
premature.

    My guesstimate will be:
    
    $ 25M Black          $ 35M Black             $ 50M Black
    Worst Case           Most Probable Case      Best Case
    
    The real question is Qtr. 1 as Robert Palmer, himself told Wall Street
    in Qtr. 3 when we announced the $ 30M red results.   Traditionally, we
    go down (revenue wise) in Qtr. 1 & Qtr. 3 usually due to Europe's
    slow markets during summer/winter.
    
    Results should be officially announced during fiscal-week 3 (July 18 to
    23).

    An earnings estimate based on sentiment is not worth much.

    The week in which earnings will be announced will be the week starting
    July 26, with the most likely date being July 28.  The date may be
    adjusted depending on the press from IBM, Apple, and HP.

    Using the "Positive news" note in this conference as a basis, I'd have
    to say that Digital will realize a profit of $2.6B.  I mean "everybody"
    is overbudget, new biz is cropping up everywhere, manufacturing loves
    sales and the U.S. Navy will become a total Digital shop.
    
    Other predictions:
    
    	- average salary increases = 22%
    	- POST-ITS for everybody
    	- mileage allowance increased to $.35 per mile
    	- all employees will be allowed to travel First Class
    	- DEC-100 will become Digital-10,000
    	- lay-off end and 5,000 people added to support ultra-high demand
    	  for products and services
    
     
    Of course all this is unofficial.  Expect a general announcement just
    after Digital buys out Microsoft in early August.
    
    Marv
    

RE: .11

	Can I have a drag of what you're smokin?

	:-)

						mike

I guess 150M in the black for Q4.

Call me Carnac.

    My predictions:
    
    Digital will make between $1.30 and $1.40 per share for Q4. Again, this
    is only my predictions.
    
    Bharat Shah

I predict that the predictions will be wrong and the actual numbers will be
correct.

Paul

    I predict that we will know by the end of this month. :-)  I further
    predict that "Wall St." will probably be unimpressed by whatever is
    reported because...
    
    The real prediction, or forecast, is revenues for the coming year! 
    This will enable the number crunchers to come up with some semblence of
    earnings.
    
    It all don't mean a hill o' beans if there ain't no earnings.