CBM 4th quarter down
2 messages in this thread
Reut 07/21 COMMODORE (CBU) SEES FOURTH QUARTER LOSS
WEST CHESTER, PA., JULY 21, REUTER – COMMODORE INTERNATIONAL LTD SAID IT
EXPECTS TO REPORT A LOSS FOR THE FOURTH QUARTER ENDED JUNE 30, MAINLY DUE TO
THE IMPACT OF A STRONGER U.S. DOLLAR ON ITS SALES AND MARGINS AND ALSO DUE TO A
LARGER THAN EXPECTED DECLINE IN CONSUMER SALES CAUSED BY A SOFTENING IN SOME
MAJOR MARKETS.
THE COMPANY SAID IT EXPECTS EARNINGS FOR THE FULL YEAR TO BE "NOMINALLY"
ABOVE FISCAL 1988'S EARNINGS BEFORE EXTRAORDINARY ITEMS OF 48.2 MLN DLRS. IN
LAST YEAR'S FOURTH QUARTER, COMMODORE EARNED 12.2 MLN DLRS BEFORE EXTRAORDINARY
ITEMS.
THE COMPANY SAID THE FOURTH QUARTER WAS ALSO HURT BY INCREASES IN OPERATING
EXPENSES REFLECTING NEW MARKETING PROGRAMS AND ITS STRATEGY OF BUILDING A NEW
SALES AND MARKETING INFRASTRUCTURE.
IT SAID DESPITE THE SOFTNESS IN CONSUMER MARKET SALES, SALES OF ITS AMIGA
AND PC PRODUCT GROUPS TO PROFESSIONAL MARKETS ROSE IN BOTH THE FOURTH QUARTER
AND THE YEAR. IT SAID IT EXPECTS TO RETURN TO PROFITABILITY IN THE FIRST
QUARTER AS IT MAKES MOVES TO IMPROVE MARGINS AND PRICING AND AS THE U.S. DOLLAR
STABILIZES.
REUTER 0831
———————————————————————-addition, CBU stock is down again ….
CBU 11.000 – 1.750 at 1:42 on 401400 shares
Thanks for the insert, Steve. If you hadn't done it, *I* would have <grin>.
As remarked in an earlier thread, marketing is where Commodore has fallen flat
historically in promoting the Amiga (sounds rather axiomatic, does it not?) If
indeed, they are investing more in marketing, I say, so what if profits
disappear for one or two quarters? As long as they are investing in the future
of the Amiga line that's just fine by me.
–Gabe