Those Data General figures showing a fiscal first quarter loss of $19.5m (CI No 1,100) where analysts had been looking for the minimaker to break even or thereabouts, are being blamed on weak demand for the Marlborough, Massachusetts company’s products here in Europe, where intensified competition from IBM is seen as having been the prime factor. The shares fell $1 to $17.50 on the figures, but the price is regarded as underpinned by the promise of a bid for the company if it falls too far – especially as book value – assets per share – is put at $21.50. The damage from IBM is seen as having been largely down to the AS/400, which has gone down well with small and medium-sized businesses in Europe. Doing badly this side of the water is synonymous with doing rottenly overall, because the US market has been dull for so long. The fact that the new top-end MV/40000 won’t be shipping until later this year has also hurt the company, because MV/20000 users are holding off rather than putting in more 20000s. But even though it is only a month into its second fiscal quarter, Data General is seen as being pushed to make a profit this year.
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