Unisys Corp appears to be overstocked with Unix systems and has embarked on an inventory reduction programme that has hit at least one of its OEM suppliers, Arix Corp, San Jose, California hard. The company says that certain orders from Unisys scheduled for delivery in the third and fourth quarters of its fiscal 1989 have been rescheduled until first quarter fiscal 1990 and that new orders for the fourth quarter ending June 30 are likely to be delayed. Arix chief executive Gene Manno says that while the impact on the company’s fiscal 1990 business is not yet clear, it has no indication of any reduction in demand for Arix products from Unisys customers. Analysts have projected that Arix fiscal 1989 fourth quarter financial results would approximate $23m in net sales and $1.7m in net income. Arix warns that the rescheduling and delay in new orders from Unisys is likely to result in a decrease in fourth quarter 1989 net sales of approximately 35% and a decrease in earnings of approximately 50% from these analyst projections. As well as its now wholly-owned Convergent Inc, Unisys also buys in Unix systems from STC Plc owned Computer Consoles Inc and from NCR Corp; no word on their deliveries.
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