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Computer peripherals industry

Data General Reports Fourth Quarter Net Income of $1.5 Million

Strategic Insights

— 2 min read

Data General Corporation reported a net income of $1.5 million, or $0.04 per share, for the fourth quarter of fiscal 1995, which ended September 30, 1995. This contrasted with a net loss of $6.2 million, or $0.17 per share, in the same period of the previous year. The company's revenues for the fourth quarter increased to $312.8 million, a significant improvement from $292.6 million in the same quarter of 1994 and $280.5 million in the third quarter of 1995.

Data General's President and Chief Executive Officer, Ronald L. Skates, attributed the company's progress to the strong performance of its AViiON business and the growth of its CLARiiON storage product line. Skates emphasized the importance of the company's transition to Intel-based AViiON systems, which will continue to impact the company until the new systems are shipped in volume. The company unveiled a range of Intel-based AViiON servers at its annual Users' Group meeting in Washington, DC.

Key Takeaways:

  • Data General reported a net income of $1.5 million, or $0.04 per share, for the fourth quarter of fiscal 1995, a significant improvement from a net loss of $6.2 million, or $0.17 per share, in the same period of the previous year.
  • The company's revenues for the fourth quarter increased to $312.8 million, a 7% increase over the same quarter of 1994 and a 12% increase over the third quarter of 1995.
  • Data General's AViiON business reported strong performance, with the company's CLARiiON storage product line also experiencing significant growth, with a 36% sequential growth in the fourth quarter of 1995.
  • The company's financial position remains strong, with cash and marketable securities of $188.8 million at the end of the fourth quarter of fiscal 1995.
  • Data General reported a net loss of $46.7 million, or $1.23 per share, for the full fiscal 1995 year, including a restructuring charge of $43.0 million and a pre-tax gain of $44.5 million from the settlement of a software copyright and trade secret lawsuit against Northrop Grumman Corporation.
  • Data General is transitioning to Intel-based AViiON systems, which will continue to impact the company until the new systems are shipped in volume.

Statistics:

  • Revenues: $312.8 million (Q4 1995), $292.6 million (Q4 1994), $280.5 million (Q3 1995)
  • Net income: $1.5 million (Q4 1995), -$6.2 million (Q4 1994)
  • Cash and marketable securities: $188.8 million (Q4 1995)
  • Number of AViiON systems installed: nearly 30,000
  • Total value of AViiON systems installed: approximately $2 billion

Sources:

  • "Data General Corporation Reports Fourth Quarter Net Income" (unattributed)
  • Data General Corporation website (www.dg.com)
  • Data General Corporation annual report (1995)

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