Digital shed its printer division last week amid speculation that the future of its networking business and company CEO Robert Palmer are hanging in the balance.
The printer division was sold to Genicom, a systems integrator and printer manufacturer, to allow Digital to concentrate on developing products closer to its central operations such as workstations and business PCs, said company officials. Financial details of the deal were not disclosed.
According to sources, Digital is looking to sell its network equipment business due to increased competition. The sources said Digital sees the unit, which makes switches and other corporate computer network equipment, as a growing cash drain that would take huge investment to survive.
It is believed the unit, with an estimated annual revenue of around $600 million (#382 million), could fetch between $500 million and $750 million.
Industry analysts have suggested that Sun would be a good bet to buy the division as it would enable the company to compete on a more even footing with large computer companies such as IBM.
One analyst also speculated that Digital's CEO Robert Palmer's days at the helm may be numbered as the company struggles to return to profit-ability.
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