Digital Equipment Corp. and Apple Computer Inc. reported strong gains yesterday in profits and revenue in their latest financial quarters.
Both companies gained business at the expense of International Business Machines Corp., which Tuesday reported a lower-than-expected 12.2 percent gain in its quarterly profit, analysts said.
Digital, the world's second-biggest computer company after IBM, said its profit rose 47.8 percent to $269.9 million in its first fiscal quarter ($2.03 a share), from $182.6 million ($1.37) a year earlier.
Revenue rose 24 percent to $2.53 billion in the quarter ended Sept. 27 from $2.04 billion a year earlier, the Maynard, Mass.-based company said.
Initial demand for the company's recently announced MicroVAX and VAXstation computers has been strong, the company said.
Digital said it was making "aggressive" investments in selling, marketing, engineering and plants in response to the growing acceptance of its networking approach to computers.
Apple, benefiting from spreading acceptance of its upgraded Macintosh line, said its profit more than doubled to $71.7 million in its fourth fiscal quarter as sales jumped 54 percent.
Cupertino, Calif.-based Apple said its earnings in the quarter ended Sept. 25, amounting to 54 cents a share, compared with a profit of $32.9 million (25 cents), in the year-earlier period. Revenue rose to $786.4 million from $510.8 million.
For its full fiscal year, Apple said its profit rose 41 percent to $217.5 million ($1.65), from $154.0 million ($1.20) a year earlier. Revenue rose 40 percent to $2.66 billion from $1.90 billion a year earlier.
The Macintosh is being shipped in record numbers and education sales, an Apple specialty, remain strong, John Sculley, the chairman and chief executive, said in a statement.
Apple is benefiting from a boom in the whole personal computer business as well as the strength of its own products, the new Apple II GS and SE as well as the Macintosh, said Laura Lederman of Duff & Phelps Inc. in Chicago.
"Their business is surging," said Bill Langenes, an analyst for Creative Strategies Research International in Santa Clara, Calif.