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VALID LOGIC SYSTEMS WARNS OF SIGNIFICANT FOURTH QUARTER LOSS

While the US computer sector looks decidedly buoyant when you look behind the great grey bulk of IBM, some sectors are embroiled in intense competition, few more so than the engineering workstation business, where the likes of Sun, Apollo and DEC are riding high while many other players are feeling the heat. One of the latter is Valid Logic Systems Inc, San Jose, California, which has announced that it expects to report significant operating and other losses for the fourth quarter of 1986, primarily as a result of decreased revenues and gross margins as well as significant one-time charges. Valid looks for sales for the fourth quarter to be higher than for the same period of 1985 but lower than those in the third quarter of 1986 – and it puts the fall down to lower than expected revenues from international operations. Gross margins are expected to be significantly lower than those for the third quarter or for a year ago, and certain substantial one-time charges are expected. The company says that expenses in the fourth quarter were too high in light of the lower revenues, and that measures are being taken to cut costs and restore the firm to profitability.

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CBR Staff Writer

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