Data General Corp reported first-quarter net income of $16.5m on revenue that remained flat at $365.6m, well up from net income of $3.5m in the year-ago quarter. Earnings per share rose to $0.32 from $0.07 last year. The results were propped up by a pre-tax gain of $7.5m resulting from a settlement with the Internal Revenue Service related to taxes paid during the company’s 1983 through 1991 fiscal years, and another gain of $5.4m from the sale of an investment. The two gains combined added $0.25 per share to the bottom line, leaving it at the $0.07 level of one year ago. The company still beat Wall Street estimates of $0.05, however and operating income for the quarter was $5.2m, up from $4.1m for the comparable quarter last year. The company said the operating results were driven by improved product margins, primarily from increased sales of its high-end NUMA-based Aviion servers. The NT server business grew on year-over-year basis and now represents 60% of the total Intel-based Aviion revenues. DG also said it benefited from the cost savings from the worldwide restructuring implemented last year. The Clariion full fibre channel storage products also continued to show solid growth, and now represent roughly half of DG’s storage business.
