Digital's sale of network business boosts Q3 income
- 18 April, 1998 13:52
Digital yesterday reported a net income of $US307 million for its third quarter, which ended March 28, compared with a net income of $US51 million for the same period last year.
This year's third quarter results represent an income of $US1.99 per common share on a diluted basis, compared to last year's third-quarter income of 27 cents per common share on a diluted basis.
Digital's quarterly results include a $US201 million net after-tax gain from the sale of its network-product assets to Cabletron Systems, Digital said in a statement released today.
Operating revenue for the quarter was $US3.19 billion, compared with $US3.31 billion for the same quarter last year.
The strong US dollar had a significant impact on revenue growth, Digital said, adding that in constant currency, the revenue growth rate would have been about seven points higher than reported results.
Product revenue for the quarter was down to $US1.68 billion, compared with $US1.84 billion reported in the prior year's third quarter. Adjusting for currency and the divestment of network products, product revenue was up slightly from the previous year's third quarter, Digital said.