Sequent Computer Systems Inc claims to have got itself back on track in its third quarter, having reported break-even results after big losses earlier in the year. It claims its product transition to the new Xeon NUMA-Q systems due out on Monday (see Top Stories) is now complete, and that it has hit its internal bookings target, significantly enlarging its backlog position. The company reported just $38,000 income compared with $10.3m profit in the same period last year on revenues down 3% to $201.4m from $207.3m. Last quarter the company posted a net loss of $58.7m including a restructuring charge of $62.9m, after laying off 256 staff and reducing expenses by the equivalent of $40m a year. It has seen sequentially lower receivables, reduced inventories, and a reduction in days sales outstanding. One of Sequent’s problems is that last year’s giant orders from the Boeing Company have now all but dried up, making year-on-year comparisons look very bad. It says its looking at the granularity of its revenues, and hopes that next year’s introduction of smaller mid-range systems will enable it to foster a larger number of smaller orders, so as to make it less vulnerable.
