Tulip Computers NV of Den Bosch, Netherlands made good on its promise in August to return to profits in the second half of 1996 after a loss of $6.6m in the first half. The personal computer manufacturer managed to reduce losses for the year to $5.2m, implying that it did about $1.4m net in the second half. The company now says that expects a profit for the full year this year, but is nervous about the first half, saying that that will probably not yet be profitable. OEM sales, to other European manufacturers that sell Tulip computers under their own names, crashed by 63% in 1996, but the company is hopeful of better times ahead, saying the European market for computers is expected to grow by an average of more than 15% – and sales in Europe of computers with its own brand name rose by 16.5% in 1996. It has now occupied its new Dutch plant with annual production capacity of 600,000 units, but it failed in its intention to link up with an unnamed partner last December. It says it is still considering an alliance with another company: We would consider a strategic alliance with a partner if this would have a positive impact for Tulip, it said. It would not say why talks had collapsed. Gross margins slipped to 23.2%, from 26.1% in 1995.
