P.M. BRIEFING : Digital Earnings Drop 44%

Digital Equipment Corp., citing a slow U.S. computer market, today reported a 44% drop in second quarter earnings, but the company said investments in new technology should help boost future sales.

Digital, the world’s second-largest computer company after IBM, said earnings totaled $155.4 million, or $1.25 per share, for the fiscal quarter that ended Dec. 30. That compared with earnings of $279.6 million, or $2.20 per share, for the year-ago period.

“It appears that the overall market for computers in Europe and Japan is good, but in the U.S. the market is still slow,” Kenneth Olsen, president of Digital, said in a statement. “Uncertain economic conditions are affecting customer purchasing intentions and slowing down the computer industry. Consequently, we expect continued pressure on operating results.”