Burroughs’ Profit Up 22% in Fourth Quarter

Burroughs Corp.’s fourth-quarter net income rose 22% from a year earlier on record revenue, the nation’s No. 2 maker of mainframe computers said.

The earnings jump was in line with what most other major computer makers reported for the final quarter of 1985. Burroughs also made one of the more positive forecasts about its prospects for this year.

“We are hopeful that the trend of improved business conditions will continue in 1986 and, if this positive development is sustained, Burroughs will have another good year,” Burroughs Chairman W. Michael Blumenthal said in a news release.

Blumenthal also said that the company expects its Memorex Corp. subsidiary to turn a profit in 1986. Losses at Santa Clara, Calif.-based Memorex have hurt Burroughs’ earnings since it was acquired in 1981.

Burroughs said its net income for the fourth quarter ended Dec. 31 was $115.3 million, compared to $94.4 million a year earlier. Revenue in the quarter was a record $1.48 billion, up 8% from $1.37 billion a year earlier.

Net income for all of 1985 was $248.2 million, up 1.3% from $244.9 million a year earlier. Revenue in 1985 totaled a record $5.04 billion, up 4.8% from the $4.81 billion reported a year earlier, Burroughs said.

For detailed data and results of other companies, please see tables, Page 14.