Control Data Corp has turned in net profits of $2.7m for the year to December 31, against losses of $6(0.4m in 1989, on turnover that fell 42% to $1,700m. A fourth quarter loss of $24m is put down to $48m restructuring costs and other pre-tax charges during the period – losses for the same period in 1989 totalled $196m. Fourth quarter results include $19m charges related to cost overruns on Empros’ energy management contracts and the write-off of $14m of Automated Wagering’s investment in a UK contract. Restructuring losses included a $10m charge in connection with the October sale of the Advanced Tactical Air Reconnaissance Systems contract to Martin Marietta, the US defence contractor, and a $5.2m loss on the sale of the Micrognosis subsidiary to Japanese CSK Corp in November (CI No 1,560). One other disposal during the period was the management buy-out of VTC, Control Data’s US bipolar and CMOS semiconductor subsidiary – which was unprofitable and unstrategic, says the company. Lawrence Perlman, president and chief executive of Control Data points out that the fourth quarter results obscure the company’s progress in 1990 – in fact, he says, most of the businesses met or exceeded their plans. The computer products division did particularly well – this was its sixth consecutive profitable quarter, and it turned in revenues of around $700m. If it wasn’t for the company’s write-offs, says vice-president of the west region Homa Firouztash, Control Data would have been profitable this quarter.
