Wang Posts $497-Million Loss for Fourth Quarter
Wang Laboratories Inc. Monday reported a $496.7-million fiscal fourth-quarter loss after the final costs from its restructuring wiped out earnings, but the computer maker predicted a turnaround in the fiscal 1991 year.
Wang posted the loss after taking $441.6 million in restructuring and other charges.
In the year-earlier period, Wang had a loss of $374.7 million that included $155.9 million in restructuring and other charges.
“We achieved our fourth-quarter goal of bringing our operating revenues and operating expenses into balance, resulting in a near operational break-even,” Wang Chairman and Chief Executive Richard Miller said in a statement.
“Moreover, as a result of the progress we have made in the past year, Wang is positioned to achieve profitability for the 1991 fiscal year that began July 1,” he added.
Without the special charges and year-end adjustments, Wang would have reported a loss of $5.6 million from continuing operations for the quarter, against $61.1 million for the 1989 period.
Revenue for the quarter ended June 30 fell 13% to $652.2 million from a restated $750.9 million.
Wang class B closed up 25 cents at $4.125 in trading on the American Stock Exchange.
“In closing out our fiscal year, we made the business decisions necessary to complete the reorganization of our company,” Miller said. “This allows Wang to move forward into the 1990s with a new expense structure, a more efficient physical plant and a redefined organization that is designed for efficient and profitable operations in the future.”
For the full fiscal 1990 year, Wang reported a net loss, after various charges for restructuring and discontinued operations, of $715.9 million on revenue of $2.50 billion, compared to a $424.3-million loss on revenue of $2.91 billion a year earlier.
The 1990 fiscal year loss included $388.3 million in restructuring and other charges, a net gain of $116.0 million on the sale of its interest in a subsidiary and losses from discontinued operations of $87.3 million, or 53 cents a share.
Miller was elected chairman and chief executive in March following the death of company founder An Wang, who transformed the company from a Boston storefront to an industry leader. Miller joined Wang in August, 1989, after the apparent ouster of Wang’s son, Frederick, by his father.
Like most other computer makers, Wang Labs has seen its sales hit amid an industry slowdown. In an effort to boost earnings, embattled Wang has undergone a major restructuring.
