P.M. BRIEFING : Digital May Report Its First Loss

Acknowledging that the slump in the computer industry has hurt its business, Digital Equipment Corp. said today it may report its first quarterly loss in its 32-year history.

“I can’t categorically deny that we may report a loss,” said Mark Steinkrauss, Digital Equipment’s director of investor relations, referring to the company’s third quarter ending March 31.

After years of vigorous growth, Digital, the nation’s second-largest computer maker, has been hurt by a widespread slowdown in the industry at a time when it is making new, long-term investments.

Steinkrauss said about 250 Digital employees had left under a continuing incentive program aimed at reducing its work force by 800 employees. “A number of analysts have said the way to deal with (decreasing revenues) is the people issue,” he said.

News in the Wall Street Journal of a possible loss led to a sell-off in the stock of the Maynard, Mass.-based computer maker. The stock slid to a new 52-week low of $71.375 on the New York Stock Exchange. At midday it was off $1.375 to $72.625 in active trading.