Stratus Computer Reports Second Quarter Revenues and Earnings Down

Strategic Insights -

Stratus Computer, Inc., a leading provider of comprehensive computer solutions for critical online environments, reported a decline in revenues and earnings for the second quarter of 1995. The company's revenues totaled $140.3 million, down 3 percent from the previous year's second quarter, with earnings and earnings per share at $6.1 million and $0.26, respectively. The decline in revenue was attributed to product transition issues and an unexpected shift towards the lower end of the product line, which affected margins and earnings. However, the company's new Continuum product line continued to ramp up in volume, with 53 revenue systems shipped this quarter compared to 25 last quarter.

Key Takeaways:

  • Stratus Computer reported revenues of $140.3 million for the second quarter of 1995, down 3 percent from the previous year's second quarter.
  • Earnings and earnings per share for the second quarter of 1995 were $6.1 million and $0.26, respectively, compared to $17.4 million and $0.71 in the second quarter of 1994.
  • The decline in revenue was attributed to product transition issues and an unexpected shift towards the lower end of the product line.
  • The company's new Continuum product line continued to ramp up in volume, with 53 revenue systems shipped this quarter compared to 25 last quarter.
  • The Continuum volume contributed 23 percent of the company's quarter two hardware product revenue.
  • Software revenue also had strong growth in the quarter, nearly doubling to $20 million.
  • Stratus published its first industry-standard TPC-C benchmarks of Continuum Series performance in June, demonstrating the best audited results among its fault-tolerant competitors.
  • The company began the merger of its TCAM and S2 subsidiaries under the single S2 name with headquarters in Dallas.
  • Stratus announced plans to introduce systems that will bring its fault tolerance to the high growth distributed computing market this fall, and low-end Continuum Series models early next year.

Statistics:

  • Revenue: $140.3 million
  • Decline in revenue from previous year's second quarter: 3 percent
  • Earnings: $6.1 million
  • Earnings per share: $0.26
  • Continuum revenue systems shipped this quarter: 53
  • Continuum revenue systems shipped last quarter: 25
  • Contribution of Continuum volume to quarter two hardware product revenue: 23 percent
  • Software revenue growth: nearly doubled to $20 million
  • Industry-standard TPC-C benchmarks: first industry-standard TPC-C benchmarks of Continuum Series performance in June

Sources:

  • Stratus Computer, Inc. press release, July 25, 1995
  • Stratus Computer, Inc. investor relations, 508-460-2135
  • Stratus Computer, Inc. public relations, 508-460-2068