While IBM’s unfriendly moves on AS/400 discounts looms over the Hinsdale, Illinois company, XL-Datacomp Inc expects its first quarter to December 31 to be strong, with turnover of $90m to $100m earning it 35 to 40 cents per share from operations. For fiscal 1990 it expects turnover of from $285m to $325m and earnings per share before a 40 cents one-time item, to range between 90 cents and $1.10 a share, down from the $1.41 a share on sales of $339.9m for fiscal 1989 because of the IBM move. Its XL-Systems Support Inc unit has signed a new remarketer pact with IBM, but it reflects substantially lower discounts and limitations on where its applications qualify under the Industry Remarketer Programme – so it will de-emphasise IBM business.
