Data General Posts Q1 '98 Financial Results
Data General (Westboro, MA; NYC: DGN) posts Q1 '98 revenue of $365.3 million, up from $348.5 million in Q1 '97. A net income of $3.5 million compares with Q1 '97 net income of $10.4 million. The decrease in net income is attributed to "the ongoing transition we are making in our storage business to fibre-channel technology," according to president and CEO Ronald Skates, "and by weaker than expected product gross margins." Revenues for DG's CLARiiON server were comparable to Q1 '97 figures, he said, noting that the company's shift in focus are affecting CLARiiON sales. Revenues for DG's AViiON server were up 10% from Q1 '97. Due to the shift in focus from traditional storage technology to fibre-channel technology, Skates expects that Q2 '98 figures "also will be challenging." During the quarter Data General unveiled the Web-Track document manager, and signed an OEM agreement with Filemark (Natick, MA).