Conference hydra::amiga_v1

2704.0. "Commodore down 3+ 28th on Q4 Loss" by ASDS::WARD () Thu Jun 29 1989 14:31

COMMODORE MAY POST Q4 LOSS

	"Commodore May Post Loss for 4th Period"  (WSJ, 6/29/89, PP:A4)

Commodore may post a loss for its fiscal fourth quarter, ending its string
of recent successes and sending its stock plunging more than 20%. The
company said that at best it will have a modest profit in the quarter,
compared with the year-earlier $12.2 million, or 38 cents a share.  Sales
have risen in most countries when measured in local currencies.  Commodore's
situation isn't necessarily representative.  It buys most of its parts in
the Far East, and the dollar has strengthened less against those
currencies than against currencies in Europe, where Commodore's sales are
strongest.  So, measured in dollars, the company's costs haven't dropped as
fast as have its sales. 

	Commodore International Ltd has sharply scaled back its forecast
	for its fiscal fourth quarter to June 30, and having said in
	late June that it would at best achieve a modest profit on
	falling sales, now says that it will report a loss of as much as
	$12m on sales down 15%: the West Chester, Pennsylvania company
	does 75% of its business outside the US, and says that business
	declined in the major markets of West Germany and Australia as
	well as the US as its Commodore 64 and 128D machines fade away;
	on a positive note, it says that the long-promised 68030 board
	that enables the Amiga to run Unix will be announced this
	quarter - no word on when it will ship - and that an
	80386SX-based AT-alike is planned.