Digital Equipment Reports $138-Million Quarterly Loss

Digital Equipment Corp., blaming a weak economy and low computer prices, reported a $138.3-million quarterly loss Thursday and said job cuts may play a big role in its recovery.

It was the first time ever that the No. 2-ranked U.S. computer maker has suffered a loss from operations.

Meanwhile, Apple Computer Inc., based in Cupertino, Calif., said its quarterly earnings rose 10.3% to $166 million from $150.5 million a year earlier thanks to big sales of its new PowerBook notebook computer.

Digital’s $1.11-a-share loss for the quarter that ended Dec. 28 contrasted with a profit of $111.1 million, or 92 cents a share, in the same period a year earlier.

“In a competitive world where most customers are cutting back on capital expenditures, we did not see any growth in product sales and we had to adjust pricing,” President Kenneth Olsen said.

The Maynard, Mass.-based company, which has cut expenses, said it is accelerating efforts to restore profit through cost containment.

Revenue in the company’s second fiscal quarter was $3.48 billion, compared to $3.35 billion in the year-earlier period.

Apple’s profit for the first fiscal quarter ended Dec. 27 amounted to $1.36 a share, against $1.28 a year earlier.

The company said revenue climbed to $1.86 billion from $1.68 billion.