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Richard Naylor

Mar 9, 1993, 5:03:19 PM3/9/93

<><><><><><><><> T h e V O G O N N e w s S e r v i c e <><><><><><><><>

Edition : 2776 Friday 26-Feb-1993 Circulation : 7157

VNS MAIN NEWS ..................................... 40 Lines
VNS COMPUTER NEWS ................................. 222 "

Please send subscription and backissue requests to EXPAT::VNS

VNS MAIN NEWS: [Tom Povey, VNS UK News Desk]
============== [Reading, England ]

Here is the News at 09:00 GMT on Friday 26-February-1993

UK News
FT-SE = 2828.7
Exchange Rate 1 UK pound = $ 1.4290 = Dm 2.3340

The were three big explosions at a gas works in Warrington early this
morning. No one was hurt but nearby residents were evacuated. Gas Board
officials believe the explosions were caused by a bomb. Some three hours
earlier, a policeman was shot and wounded as he questioned 3 men in a van
in the centre of the town. A little later, 3 men highjacked a car and
were chased by police cars along the motorway. 2 men have been arrested
and the third is being sought by police. The poice say that they believe
the men may have terrorist connections.

The Environment Secretary has warned local authorities to keep within the
government spending limits.

The Health Secretary has told hospitals that patient care must come first
when doing their budgetting.

The Metropolitan Police have warned that their men are being kept away
from crime prevention by increased bureaucracy in the court system.

European News

The USA is now said to be ready to begin the dropping of relief supplies
into Bosnia. The supply planes will be un-escorted and will fly at around
10,000 feet, at night, to avoid the risk from ground fire.

{News courtesy of the BBC}

Local Weather

A cloudy start, staying cloudy with some bright intervals. Rain later.
Cold with sleet and snow over the weekend.

VNS COMPUTER NEWS: [Tracy Talcott, VNS Computer Desk]
================== [Littleton, MA, USA ]

Wednesday's Market Digital Fair Market Value
Quote Change 1-Jun-1992 $40.750
IBM 51 7/8 + 3/4 30-Nov-1992 $33.6875
85% of lower $28.75
Thursday's Market Dow Jones Change 1-Dec-1992 $32.687
DEC 48 1/4 +1 3/8 3365.14 + 8.64

IBM - Confirms massive cuts will involve layoffs
{The Boston Globe, 25-Feb-93, p. 49}
IBM plans to eliminate more jobs this year than originally planned as part
of its massive restructuring that the company said yesterday would include the
first layoffs in its history. A company spokesman said IBM expects to
increase the 25,000 job eliminations announced last year. "We don't know by
how much and we won't know for a while," said Jim Ruderman, the spokesman.
Each company units is developing a business plan that will affect the number
of job eliminations, he said. Industry consultant Robert Djurdjevic said he
expects the increase won't be substantial. IBM said the job eliminations
would include 500 jobs at its Armonk, N.Y., headquarters staff, with an
undetermined number of cuts to be made through layoffs. Business plans
developed for three plants in upstate New York project more job eliminations
than previously planned and company officials said some workers would almost
certainly be laid off. Ruderman said the company believes a $7.2 billion
charge recorded in the final three months of last year should be enough to
cover the severance costs of job eliminations beyond the 25,000. The company
said it will continue to offer incentives to departing employees and some of
its headquarters staff will be transferred within the company. However, it
said in a brief statement, "layoffs will be required to accomplish the total
reduction." Last week the company said it would pay up to a year's salary and
a year of medical coverage to employees who quit. Counseling will be offered
employees seeking new careers, and IBM said it will also pay up to $2,500 for
job retraining costs per worker. Laid-off employees would be provided largely
the same benefits, but won't be able to accrue service credit and health
insurance coverage if they want to take a five-year leave of absence to carry
them to retirement.

Dell Computer - Drops planned share offering, stock slides 17%, profit forecast
{The Wall Street Journal, 25-Feb-93, p. A3}
Dell shares lost $6.125 to close at $30.125 in national over-the-counter
trading as the PC maker yanked a proposed $200 million stock offering and
sketched a grim vision of renewed industry bloodletting. Citing "unfavorable
market conditions," Dell withdrew a planned offering of four million shares.
In a news release, Dell shrugged off the failed equity offering, saying that
low interest rates make other sources of capital attractive. The company said
it "is confident about its ability to fund significant growth for the coming
year as it continues its aggressive pursuit of market share." But in issuing
a project for the fiscal year ending in January, Dell made it clear that
continued strong market-share growth will likely come at the expense of its
vaunted profit margins. The company said it expects sales to grow more than
70% in the current fiscal year to between $3.4 billion and $3.7 billion, with
net income of $3.30 to $3.75 a share. These profit numbers, while at the high
end of analysts' estimates, indicate that Dell thinks net margins, or net
income as a percentage of sales, might slip below 4% for the year. Dell, long
one of the industry's stellar performers, typically posts net margins in the
5% to 6% range, recovering profit lost to price-cutting by impressive sales
growth. Analysts said the projections suggest Dell is bracing for another
round of brutal price cuts. "The price wars aren't over," says Lucianne
Painter, an analyst with Salomon brothers Inc., who says she expects major
vendors to "push ahead with their Darwinian theme" or trying to squeeze out
smaller players. A Dell spokeswoman essentially agreed with that
interpretation. "The consolidation in the industry that began last year is
accelerating and the winners' circle has been identified and we don't want to
inhibit our ability to solidify our position in that winners' circle
long-term," she said.

Microsoft - Loses bid for a trademark on the word "Windows" for PC software
{The Wall Street Journal, 25-Feb-93, p. B8}
The U.S. Patent and Trademark office has rejected a bid by Microsoft to gain
a trademark on the word "Windows" when used to describe personal-computer
software products. In confirming the trademark office's ruling, Microsoft
acknowledged that the government considers the word Windows to be a generic
term, even in a PC context. The company said it plans over the next six
months to appeal the ruling, which it described as "non-final."

Texas Instruments - Expects worldwide chip market to grow 17% this year
{The Wall Street Journal, 25-Feb-93, p. B4}
In its annual briefing to financial analysts, Texas Instruments said
semiconductor demand in the U.S. is expected to jump 25% this year to $23
billion, compared with a growth rate of 20% in 1992. The company pegged the
increase to booming demand for PCs, as well as expected 3.1% growth in the
U.S. economy, the highest since 1988. Semiconductor demand will grow 28% in
the Asia Pacific region this year and 13% in Europe, TI said. In contrast,
the company predicted a sluggish semiconductor market in Japan this year, as
the nation struggles through its worst recession in two decades. TI said that
market will grow 5% this year to $20.4 billion. Last year, the semiconductor
business in Japan shrank 7%. The boom in the U.S. and the slump in Japan make
North America's market bigger than Japan's for the first time in eight years.
World-wide, TI said the semiconductor market is expected to total about $70
billion this year.

Spinnaker Software - Agrees to acquire Power Up Software Corp.
{The Boston Globe, 25-Feb-93, p. 49}
Seeking to grow its way into greater profitability, Spinnaker yesterday said
it agreed to acquire Power Up, which will more than double its revenue.
Spinnaker said it would buy the San Mateo, Calif., company for an undisclosed
amount of stock and warrants to purchase Spinnaker stock. Power Up's $30
million in revenue would bring Spinnaker's total sales to about $65 million.
Spinnaker chief operating officer Lynn Weiss said the deal would likely be
completed in the spring. She also said the company's current management team
will remain largely the same and jobs will probably be added at Spinnaker,
which has 150 employees. Edward Lauing, Power Up's founder and chairman, will
join Spinnaker's board, and "there will be some consolidation" at its West
Coast headquarters, Weiss said. Both companies sell productivity software
aimed at homes and small business users. Power Up's chief channel of
distribution consists of the 8 million catalogs it mails each year.
Spinnaker's distribution includes 15,000 retailers, among them mass
merchandisers and office supply stores. Power Up's catalog operations will
remain in San Mateo, Weiss said, while Cambridge, Mass., will become the
center of retail distribution.

Wang - Won't make new PC line itself
{The Boston Globe, 25-Feb-93, p. 54}
Wang announced anew line of person computers, but the bankrupt company said
the PCs would be made by another firm. The PCs, based on Intel's 486 chips,
will be sold to Wang's commercial and government customers., John Langell, a
Wang marketing manager, said. Wang, which filed for bankruptcy last year, has
made its own personal computers in the past, but Langell said the company is
scaling back its PC manufacturing. This is part of the company's overall
strategy to shift away from manufacturing and focus on software and services
as Wang reorganizes in bankruptcy court. Langell declined to identify the
supplier of the new Wang PCs.

Apple - Special 8-page WSJ advertising supplement
{The Wall Street Journal, 25-Feb-93}
The supplement includes ads for the Macintosh Color Classic, Macintosh LC
III, Centris 610 and 650, and the Quadra 800.

Digital - Announces its intention to close hardware manufacturing facility in
Galway, Ireland
{Livewire, Worldwide News, 25-Feb-93}
Employees at the Galway, Ireland facility were informed this morning that
hardware manufacturing operations there will be phased out during the next 12
months. Galway, one of the company's systems manufacturing plants, produces
mid-range and high-end VAX computer systems.
Digital will retain its Galway-based software development and distribution
operations and maintain complete sales and service operations in Ireland. The
company also will work with local authorities, the Irish government and the
European Commission to find other parties who can put the 450,000-square-foot
plant to other uses which will generate employment in the region.
The hardware operations closing affects 750 employees. Software operations
employ about 350 people, and sales and service activities employ more than
Details of the plant closing were outlined in meetings with employees at the
Galway site. Employees affected will be offered benefits including a
financial support package based on length of service.
Ed McDonough, vice president, Manufacturing and Logistics, explained the
decision in the context of the company's worldwide manufacturing strategy.
"For more than three years, Digital has been restructuring its manufacturing
function, including its extensive European-based operations, to adjust to the
changes that are affecting the entire industry," De said. "Technology has
advanced by orders of magnitude, increasing the efficiency with which products
can be manufactured. The movement of computing power to semiconductors, the
shift in customer demand to high-volume, low-margin commodity products, and
the decreased demand caused by a soft worldwide economy have all been major
contributors to an excess of manufacturing throughout the industry.
"Manufacturing will remain a core compentency for Digital," he continued.
"Our goal is to position manufacturing capacity to best serve our markets and
to optimize the utilization of our assets. It is on the basis of strategic
intent -- and not an issue of quality of work -- that the decision was made to
close the Galway plant. Since its opening in 1971, the Galway plant and its
employees have made a significant contribution to Digital's success. This was
a very difficult decision to make."

Digital - Announces Alpha AXP computing companions for VXT 2000 X Window
{Livewire, Worldwide News, 25-Feb-93}
Digital has announced special VXT 2000 X Window terminal packages for
companion computing with Alpha AXP systems, servers and workstations. This
combination enables desktop users to access Alpha AXP's power at the lowest
possible cost per seat (around $3,000) for a multiwindow device.
Each package includes five VXT 2000 X Window terminals and keyboards, five
VXT 2000 software licenses, and a server -- the InfoServer 150VXT -- all at
reduced prices. A Sony Trinitron 19-inch color model was also announced today
(it is not part of the five-pack packages), along with a new lower price for a
desktop laser printer when it is purchased in conjunction with Alpha AXP
Users who need touch screen capability on their VXT 2000 X Window terminals
can get it with TOUCHplus from Data Concepts, Inc. An option on 19- and
17-inch color monitors only, TOUCHplus is an integrated hardware and
software solution that brings mouse-compatible touch systems to the desktop.
It is used in applications ranging from banking and health care to
pharmaceutical and manufacturing.
Sony and Trinitron are registered trademarks of Sony Corp. X
Window System is a trademark of MIT.

Digital - European territories formed
{Livewire, Worldwide News, 24-Feb-93}
Digital Europe has been organized around seven territories which, says
Digital Europe President Dick Poulsen, "will enable us to take a significant
step forward in implementing the shift from a geographic profit and loss
responsibility to a worldwide business unit structure."
The intent is to have a manageable number of territories for the business
units to interface to, while at the same time ensuring that each one is big
enough to encompass a viable and focused level of business.
The territories are as follows:
Territory 1 - Managed by Geoff Shingles.
United Kingdom and Ireland

Territory 2 - Managed by Alberto Fresco.
Includes Spain, Portugal, Austria, Israel, Poland,
Hungary, Czechoslovakia, Russia, the Baltics, Ukraine,
Greece, Turkey and all of Digital's operations covered by
the Country Development Group (CDG).

Territory 3 - Managed by Hans Dirkmann.

Territory 4 - Managed by Paul van der Spiegel.
Includes Switzerland, Belgium, Holland and Luxembourg.

Territory 5 - Managed by Bo Dimert.
Includes Denmark, Norway, Sweden and Finland.

Territory 6 - Managed by Mario Bonzano.

Territory 7 - Managed by Michel Ferreboeuf.

Each of the territory managers will be members of the European Management
Board and will work with the business unit managers to finalize FY94 plans to
support the objectives of the new worldwide business unit structure.

Please send subscription and backissue requests to EXPAT::VNS

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<><><><><><><><> VNS Edition : 2776 Friday 26-Feb-1993 <><><><><><><><>

ri...@tosh.wcc.govt.nz (Richard Naylor )

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