TECHNOLOGY - Sept. 14, 1996

MacNeal-Schwendler Eliminates Quarterly Dividend: In an effort to conserve cash for expansion and investment in new products, the Los Angeles-based developer of computer-aided design software said it will cease paying its 6 cents a share quarterly dividend to stockholders. MacNeal-Schwendler Corp. said the change in policy would provide a stronger base from which it can either develop or acquire a broader suite of new products in the aerospace and automotive markets. In May, the company said expansion costs were hurting its earnings. In June, it cut its quarterly payout 63%. And last month, MacNeal-Schwendler reported a 29% drop in earnings for the second quarter ended July 31 to $1.9 million, or 14 cents a share, on slightly higher revenue of about $32.8 million.