Conference ilbbak::us_sales_service

147.0. "Don Zereski: FY92 Summary" by FSOA::KCHERNACK (Never wear a Speedo to a jury pool) Sun Aug 02 1992 20:23

                  I N T E R O F F I C E   M E M O R A N D U M

                                        Date:     31-Jul-1992 06:43pm EDT
                                        From:     Don Zereski
                                                  VP.ACCOUNT.SALES AT A1 at SALES at MRO
                                        Dept:     US Area
                                        Tel No:   

TO: See Below
 
Subject: FY92 SUMMARY                                                           


        In my July 2 memo to you, I committed to share our U.S. 
        financial results as soon as they became available.  As 
        you are aware, late last week Digital announced corporate 
        earnings for both Q4 and the full year FY92.  The 
        announcement described a loss for the year of $2.8B.  
        Much of this loss is due, in a large part, to a 
        restructuring reserve of $1.5B and a change in 
        post-retirement benefit accounting.  While the corporate 
        results for the full year were disappointing, there were 
        successes in the U.S. Area of which we all should be 
        proud.
        
        A brief review of some of our financial successes in the 
        U.S. Area include:
        
        	For Q4:
        	CERTS were 17% above forecast
        	CERTS were 40% above Q3
        
        	For FY92:
        	We certed the same amount of business in  FY92 as 
        	we did in FY91
        	Sales yields grew 12% over FY91
        	Field spending was 1% lower than in FY91
        
        Last January, I announced a program that would pay a 
        bonus of $250 to every U.S. Field employee if we achieved 
        our targeted U.S. revenue goal.  Despite the excellent 
        CERTS performance in Q4, the orders came in too late in 
        the quarter to convert into Q4 revenue.  As a result, we 
        fell short of our target, as we achieved only 96% of our 
        revenue goal.  Therefore, we did not earn the $250 bonus.
        
        We will be discussing these results on August 11 at our 
        DVN.  We will also be discussing our strategy for the 
        U.S. in FY93 during this DVN.  I can assure you we will 
        be as open and candid as we can be during a public 
        broadcast.  There will be time for questions and answers.  
        Please make every effort to either be present for the DVN 
        or view a tape of it as soon as you can.
        
        I am excited about our Q4 results and the continued 
        positive trend that we have seen thus far in July.  The 
        continued momentum from DECWORLD, and our new VAX and 
        open VMS product announcements are generating tremendous 
        positive reactions from the press, consultants, and 
        customers.
        
        Thank you for the tremendous effort in FY92.  I look 
        forward to working with you to implement a working plan 
        for FY93.
        
        Regards,
        
        Don