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July 29, 1994

PROFITS ARE UP AT DEC BUT THERE’s NO WORD ON EXACTLY HOW MUCH

By CBR Staff Writer

Nippon Digital Equipment Corp results for the financial year ending on June 30 show revenues were up 7% to the equivalent of $970m from $908m last year. Last year’s $30m loss has been turned into a profit, although Nippon Digital did not announce the exact figure. Nippon Digital’s personal computer sales were up by a soaraway 400% on the previous year, while workstations including the Alpha AXP, were up 730% in volume terms and 450% in value terms. Nippon Digital claims Alpha AXP workstation sales represent 73% of the total workstation sales, indicating a rapid shift to the Alphas by users. The results are attributed to new leadership under Yoji Hamawaki, the ex-BMW man who came on board in May last year, and a new emphasis on the needs of the customer. Nippon Digital has reorganised and the changes took effect from July 4, with increased emphasis is being placed on the relationship with sales channels, in an attempt to reverse the ratio of direct to indirect sales; as well the previous five industry sales divisions have been amalgamated to three, in order to stimulate the direct sales divisions, and an increased emphasis is being placed on regional offices. Alliances with domestic Japanese partners such as Mitsubishi Electric Corp, Seiko Epson Co and Kubota Computer Corp are also being promoted. Yasuhiro Nakagawa, previously the president of MIPS Japan, has been appointed director and manager of the manufacturing industry sales division.

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