STOCK WATCH
FUJITSU
Fujitsu has reported a huge net income drop in its 1997 year end, despite growth in sales. Net income fell 88 per cent to Y5.5 billion from Y46.2 billion in 1996. Sales for the year were Y4.99 billion. Profit was affected by poor memory prices, exchange losses on Asian currencies and charges to its Amdahl acquisition. This was despite sales of computers and chips growing 12 per cent, with Amdahl's revenue contributing to Fujitsu's performance.
PCs and hard drive sales also rose in the US and Europe.
TOSHIBA
Toshiba posted a massive 90 per cent profit drop in its year end results.
Its net profits were Y7.3 billion on revenue of Y5.5 billion. Sales of chips, PCs and consumer products fell, while its North American business reported an operating loss. According to reports, Toshiba US was hit by increased competition in the sub-$1,000 market.
WANG
Charles Wang, chief executive of Computer Associates, was awarded about $550 million in company shares, but was knocked off the top spot in terms of highest salary for an IT executive for the first time since 1991. His windfall was triggered by the software giant's share price, trading above $53.3 for the 60th day in succession in a 12 month period. The award was equal to half the company's profits last year. Wang earned about $13 million in cash and stock last fiscal year and was knocked off the top spot for salary, replaced by Ronald Skates, president and chief executive of Data General. Wang earned $6 million, the same as Lou Gerstner, IBM CEO. Skates was awarded $10 million.
MANUGISITICS
Manugisitics issued a first quarter profit warning. It blamed time spent focusing on expanding the sales team, moving to a vertical sales model and undertaking due diligence investigations into two potential acquisitions.
Its shares had been in decline since last week, when they fell $2, but plummeted $19.5 to $28 on 27 May, after analysts BT Alex Brown reiterated its strong 'buy' rating, but warned the firm may have trouble closing enough deals to meet expectations.