Apple, Unisys Profits Surge in Quarter
Three major computer industry companies--Apple, Unisys and Microsoft--Wednesday reported vastly improved financial results due largely to a surge in sales at year-end.
Nevertheless, technology stocks tumbled on Wall Street as investors apparently were more nervous about the future than comforted by the results of the past three months.
“The December quarter is history,” said Jay R. Stevens, a technology analyst with Dean Witter Reynolds in New York. “The story is what’s ahead, and there is a real fear of the future.”
In an impressive showing, Apple Computer posted first-quarter earnings of $121.4 million, more than double the $58.5-million profit a year earlier. Revenue for the quarter ended Jan. 1 rose 57% to $1.04 billion, from $662.3 million in the prior year.
The Cupertino, Calif.-based maker of personal computers attributed its results to the success of new products, noting that two-thirds of the quarter’s sales came from products introduced in the last year.
John Sculley, Apple’s chairman and chief executive, said the company’s 1987 calendar year revenue passed the “significant milestone” of $3 billion, with increases distributed evenly between domestic and international sales. These trends, Sculley said, “indicate that fiscal 1988 is off to a strong start.”
Still, Apple stock fell $3 to $39.75 in trading Wednesday.
Unisys, created 15 months ago through the merger of Sperry Corp. and Burroughs Corp., reported earnings of $216.9 million for its fourth quarter, a rebound from a merger-related loss of $188.5 million a year earlier. Quarterly revenue for the computer and electronics company, which maintains headquarters in Detroit and Blue Bell, Pa., was $2.8 billion, up about 10% from $2.54 billion a year ago.
For all of 1987, Unisys had profits of $578 million, versus a 1986 loss of $43.4 million related to the merger. Revenue for the year was up 30%, to $9.71 billion from $7.43 billion.
The company’s stock, however, was off $1.625 to $30.75.
Microsoft Corp., a leader in computer software, said earnings for its second quarter ended Dec. 31 totaled $35.3 million, up 79% from the $19.7 million reported a year earlier. Revenue for the Redmond, Wash.-based company amounted to $155.9 million, up 92% from $81 million.
Microsoft attributed the improvement to robust growth in the computer business and the company’s new products. The company’s stock was off $3.25 to close at $54.
