Tandem Computers Inc, whose fast-growing Japanese business is under threat from Fujitsu Ltd’s new fault-tolerant communications processor (see front) warns that it is facing a difficult environment in 1991, and that earnings per share for the current fiscal to September 30 will be below analysts’ estimates of 30 cents to 40 cents a share: the company sees slow sales in the banking and financial sector – banking historically accounts for 20% to 25% of its total and other financial another 15%, and currently only 2% to 5% is coming from stockbrokers against a typical 8% to 10%; in anticipation of a very stormy 1991, the company has slashed capital spending plans to under $150m for 1991 compared with $300m this year, has already instituted a hiring freeze and is cutting its discretionary spending.
