CompuServe Messages

#CBU, $177.6M Loss

    30-May-93 02:09:37
Sb: #102055-#CBU, $177.6M Loss
Fm: Steve Ahlstrom 76703,2006
To: Dale Cohen 75300,3674
Dale, I don't have the financial background to even attempt to answer your questions. However, I have to wonder about competence at the highest levels of management when a company has $120M is sales in a quarter yet manages to lose almost $2M a day. In my opinion (and that's not worth much — again, no background to comment knowledgably), the loss YTD is $273M — that means that many things can now happen… they can slowly go away, they can sell the company, they can be taken over (value of stock, at an all time low now, is bound to crash on Tuesday). Or, hopefully this will be taken as a wake up call to make better product decisions (the A600 was a failure the day it was released — AA was only a couple of months away, they knew it, and who in their right mind would buy an ECS A600 when they could get an A1200, the CDTV was an ill thought out product — it flopped, as most any Amiga user would have predicted when it was introduced) — tens of millions were wasted on these products. As well as product direction, a sensible, agressive marketing effort is needed. What I see now is Amiga at the forefront in the video niche (necessitating high end machines) and CBM is twiddling it's fingers losing money on the lowend market.