Digital denies merger gossip

The firm has rejected rumours that it will lump PCs and systemstogether

Digital has quashed rumours that it will merge its PC business unit with Digital Systems, despite the blurred distinction between the divisions' hardware.

The company has also sold rights to its Assetworks desktop management solution to Computer Associates, and has promoted Hans Dirkmann to succeed Vincenzo Damiani as president of Digital Europe.

At Digital's Decus conference in Barcelona, Carlo Gilardi, European VP at Digital PC, said the company may outsource some more of its PC production, but will continue to manufacture PCs in Scotland.

Gilardi said PC products will become more powerful but did not rule out a PC and Systems merger. 'The two businesses are independent and separate, and the Alpha and Intel markets are different sectors. But this is today.

Tomorrow we need to understand market changes and adapt. The market and customers will tell us what to do.'

He blamed huge reseller stocks, the US PC business and Digital's aborted move into the consumer PC market for the division's poor results. 'We will cut costs in the PC unit by 26 per cent in Q1. Our goal is profitability by the end of this calendar year.'

CA plans to integrate Digital's Assetworks with CA-Unicenter and customers of both companies will gain the use of combined technology.

Digital president Bob Palmer promised the firm will continue its return to profit over the next year. He said Digital's Internet business, Alta Vista division and commitment to Windows NT will help.

Executives at Decus hinted that Samsung and Mitsubishi will use the Alpha chip in their machines soon.