* Gateway first quarter results better than Compaq's
Direct PC vendor Gateway has reported strong first quarter results, contradicting Compaq's warnings of a slowdown in the PC industry.
In the first quarter this year, which Compaq said had hit its own profits badly, Gateway shipped nearly 1.1 million PCs, a 42 per cent increase from the same quarter of last year.
Sales increased 22 per cent to $2.103 billion and net income was up 31 per cent to $99.6 million or $0.62 per share.
The company attributed its strong results to substantial growth in the US particularly in the consumer market.
Ted Waitt, Gateway chairman and executive officer commented: "The strategy we've been executing for the past year is paying off with real, noticeable momentum in the consumer marketplace.
Our consumer business has never been stronger, and now we're positioned to expand that success into the small and mid sized business arena."
* Lucent doubles profit for Q2
Lucent, the telecoms equipment giant, doubled its profit for its fiscal second quarter because of the market's insatiable desire for network capacity, said company bosses.
Rich McGinn, Lucent's chairman and chief executive, said: "Unprecedented demand for network capacity among both established and emerging service providers worldwide, the accelerated build out of next generation broadband networks and strong demand for our advanced communications semiconductors are propelling Lucent into a period of continued growth."
The company is also preparing to launch its wide ranging voice over IP strategy on 3 May, called Real World Voice over IP. The architecture will be demonstrated at Networld+Interop in Las Vegas next month.
Said a spokesperson, "We will blow away Cisco with Real World."
The demonstration will include services for legacy voice PBX systems, IP telephony and gateways, data networking switches, plus policy management tools.
Profit leapt to $457 million, or $0.17 a share, compared to $186 million, or $0.07 a share last year. Including a one time charge, profit stood at $442 million, or $0.16 a share.
Revenue soared 33 per cent to $8.22 billion in the second quarter from $6.18 billion a year ago.
Lucent said revenue was driven by sales of systems for wireless, optical networking, data networking, and switching systems.
* Sybase posts positive Q1 despite weak period
Sybase chief executive, John Chen, applauded the company's efforts in posting positive fiscal first quarter results during its traditionally weak period.
Chen also praised the 14 per cent increase in its database licence revenues.
For the quarter ended 31 March, Sybase turned the company around to post a profit of $5.9 million, or $0.07 a share, compared with a loss last year of $5.9 million, or $1.01 per share. Last year's figure included a $51.7 million restructuring charge.
Pieter Van der Vorst, Sybase's chief financial officer, said: "Not only did we report an increase of cash in Q1, we continue to see an improvement in the quality of our business, which has resulted in a reduction of days sales outstanding to 67 days."
Revenue for the quarter remained flat at $208.3 million, compared with $206.8 million last year.
Chen said the company is continuing its recovery and during the quarter Sybase won contracts from American Express Financial Advisors, Integrated Fitness, and RBC Dominion Securities.
Sybase said it will reveal an ecommerce strategy that will be based around the next release of its enterprise database. The database will feature full enterprise Java bean support, plus improved system management.
Also reported this week: Compaq, IBM, Sun Microsystems, Nokia, Ericsson, Informix. Reporting today: Silicon Graphics.
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