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Computer peripherals industry

Cambex Corp. Reports Fiscal Year 1995 Results Amid Declining Demand in Mainframe Memory Market

Strategic Insights

— 1 min read

Cambex Corp., a leading supplier of direct access storage products for IBM mainframe and client/server computers, reported financial results for the fiscal year ended August 31, 1995, amidst a declining demand in the mainframe memory market. The company's revenues decreased to $35,152,000, resulting in a net loss of $9,899,000, compared to revenues of $40,549,000 and net income of $590,000 in the previous fiscal year. The company's decision to de-emphasize marketing memories for all but the largest IBM mainframe computers and write down its ES/9000 models H0 and H2 inventories led to a significant restructuring effort, including a 15% workforce reduction.

Key Takeaways:

  • Cambex Corp. reported revenues of $35,152,000 and a net loss of $9,899,000 for the fiscal year ended August 31, 1995, compared to revenues of $40,549,000 and net income of $590,000 in the previous fiscal year.
  • The company's decision to de-emphasize marketing memories for all but the largest IBM mainframe computers led to a write-down of its ES/9000 models H0 and H2 inventories and a reduction in the value of its IBM trade-in inventory to under $1 million.
  • Cambex consolidated its manufacturing and test operations through a 15% workforce reduction and streamlined its operations by eliminating certain administrative functions.
  • The company will focus on the rapidly growing market for disk storage arrays with its Cascade(tm) and Centurion(tm) product families for the mainframe and client/server markets.
  • The Centurion Disk Array is a flexible RAID disk storage system designed to meet a wide variety of capacity, performance, and high availability requirements for client-server computers.
  • The company's Cascade Array DASD has proven to be a technological success, redefining value, performance, and reliability for cost-conscious users of IBM mainframe computers.
  • Cambex expects its disk storage sales to exceed the reduction in revenue from discontinued memory lines in fiscal year 1996 and aims to be profitable in the third quarter of that year.

Statistics:

  • Revenues: $35,152,000 (1995) vs. $40,549,000 (1994)
  • Net Loss: $9,899,000 (1995) vs. $590,000 (1994)
  • Workforce Reduction: 15%
  • Trade-in Inventory Value: under $1 million
  • Revenue Growth Expected: Exceed reduction in revenue from discontinued memory lines in fiscal year 1996

Sources:

  • Cambex Corp. (1995) - Business Wire, November 20, 1995
  • Cambex Corp. (1995) - Company Press Release, November 20, 1995

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