Computer firms reap benefits of cost cutting; most big hardware makers are expected to report profit for latest period

Computer vendors' efforts to cut costs seem to be working, and most large companies will record profits in 4th qtr 1993. An industry observer says IBM will show a 4th qtr profit of about 73 cents a share, which compares with a loss of $5.46 billion after $7.4 billion of charges in the same period in 1992. IBM's revenue for the quarter increased by 2 percent to $20 billion from $19.56 billion. The increase was driven by 40 percent growth in microcomputers, which is now IBM's biggest business, and 25 percent growth in services. HP has replaced DEC as the nation's second-largest computer company and continues to grow rapidly. DEC could show a modest profit in its 2nd qtr ended Dec 31. An analyst foresees a profit of 10 cents a share, which compares with a loss of $73.9 million, or 57 cents a share, a year earlier.