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Microcomputer and workstation manufacturers experience a profitable Mar 1991 quarter as more computer buyers reduce mainframe and minicomputer purchases. Analysts expect IBM to report a 50 percent decline in net income since revenue from its RS/6000 workstations did not compensate for depressed sales of its mainframes and minicomputers. Analysts predict Amdahl Corp's earnings to drop 70 percent for the quarter ended Mar 31, 1991 and NCR Corp's earnings to drop 24 percent; both companies announced mainframes and minicomputers in 1990 that will not be shipped until the end of 1991. Sun Microsystems Inc is expected to see an increase in sales from $632.2 million in 1990 to $825 million in 1991 due to successfully shifting its product line to corporate computer rooms and desktops. Microcomputer makers Apple, AST Research Inc and Dell Computer Corp are all expected to report increased net incomes.

Amdahl Corp reports its net income fell 42 percent, while revenue climbed 15 percent in 4th qtr 1989. Although the decline is steep, the results are slightly better than analysts expected for Amdahl in a sluggish market with competitive pricing. One problem for Amdahl is that its profit margins are being squeezed on its line of mainframe computers, which account for 65 to 70 percent of its revenue. Further, competition from IBM is forcing prices down, while unfavorable foreign exchange rates have put upward pressure on the cost of parts Amdahl buys from Fujitsu Ltd. Amdahl also states that significant expenditures on product development have cut into profits.

SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 24, 1995--Amdahl Corporation today announced fourth-quarter and full-year 1994 financial results, bringing to close a year of rising profits that contrasted sharply with the large losses and [...]