Board of Directors. July 11, and our latest year-end forecast on revenues and the same for orders.

Size: px

Start display at page:

Download "Board of Directors. July 11, and our latest year-end forecast on revenues and the same for orders."

Margaret Pierce
5 years ago
Views:

1 D R A F T a r k e t i n g P r e s e n t a t i n Bard f Directrs July 11, 1975 The Marketing presentatin vers the 6-nth id-year perfrance and ur latest year-end frecast n revenues and the sae fr rders. The first chart (SHW SLIDE 1) shws the revenue perfrance year-t-date. The actual results are revenues f $410M versus a budget f $401M s we are running a little ahead f revenues year-t-date. ur latest year-end prjectin fr revenues is $879M (PINT T TREND LINE) --up abut $4M fr ur prjectin in May. (SHW SLIDE 2) This next chart shws ur year-end revenue prjectin a little re detailed, and I want t highlight a few ites: MMENT THE INDIVIDUAL SERVICES ITEMS MMENT THE INDIVIDUAL SYSTEMS ITEMS MMENT THE EM INTERNATIAL ITEM. In suary, we're abut n in Services fr the year, a little shrt-fall in Systes, a little shrt-fall in Peripheral Prducts principally fr EM, and a significant increase in Military Prducts.

2 - 2 - (SHW SLIDE ) n the rder side, year-t-date ttal rders accepted and in prcess fr six nths are $97M -- that is just a hair shrt f budget, which is $40M We have picked up a little grund n year-t-date rder perfrance in the send quarter* (PINT T TREND LINE) We are nw prjecting $889M versus ur $881M quta. (SHW SLIDE 4) The rder detail behind ur year-end rder prjectin highlights se ites wrthy f entin. First f all, in Services rders and revenues are synnyus, s the ents I ade n Data Services, Prfessinal Services, Educatin Services and Engineering Services revenues wuld be the sae ents fr rders. In Systes, I think yu can see that the destic year-end rder perfrance expected is significantly prer than budget whereas Internatinal Systes rders are significantly better than quta. Military Prducts rder picture again is significantly better than budget.

3 - - Peripheral Prducts rders, hwever, are running under budget, the tw biggest deviatins being the $10M shrt-fall in Internatinal EM business and the sall additinal rder values expected fr WMATA, the Washingtn Metrplitan Area Transit Authrity, As st f yu knw, we have taken legal actin against WMATA The net ttal then is Services pretty uch right n budget in bth Systes and Military Prducts we expect t beat ur rder qutas fr this year and we are pretty sure we are ging t fall shrt in Peripheral Prducts. Even thugh WMATA shws up as $7% illin shrt-fall in the nubers, the nly real disappint ent is the Internatinal EM picture. As far as general ents are ncerned, ur end-user peripheral prduct rder activity has picked up nsiderably since I last reprted t yu. We have been increasing ur prices rather steadily n all f ur end-user prducts and we fund ut that there is treendus price sensitivity in this arketplace. A sall change f 77 in ur 70 Mery add-n pricing has abslutely turned arund the flw f rders fr nthing t a very pleasing surge.

4 - 4 - There have been n big new Systes rders received that I haven't already reprted r ented n previusly. We have been ntified f selectin at CERN fr an additinal 7600 purchase, but the rder is nt actually signed and the ntract is nt pleted as yet. I have ntinually entined the shrt-fall in Destic Data Services rders and revenues. I a pleased t reprt that June is the first nth that we ade quta fr ur nth in Destic CYBERNET. The exact figures still aren't in, but we either ade it r clse enugh t calling it aking quta fr June -- and that's the first tie I uld reprt that this year. We will annunce this nth a prgra t add se entu t ur sales activities destically directed priarily at destic CYBERNET and se Systes prducts that are beginning t accuulate in inventry. We call the new prgra "LET'S GET MVING". I expect we will ake ur year-end prjectins. I hpe that I can reprt a little iprveent in the frecast at each Meeting between nw and year-end. We are running well belw ur arketing expenses year-t-date -- even regnizing the increased arketing expenses reflected by the dllar weakness in respect t currency exchange rates.

5 -5- I spent a week in Eurpe and I just ight ake se brief ents ncerning the situatin in Eurpe. The rder picture, except fr the EM business, lks very gd. I expect Eurpe will ake its revenue and net prfit ntributin budget fr the year. We did experience a strike in France. It lasted just abut a week. It resulted fr ur having clsed Anneasse, which was a sall Business Prducts peratin -- and then annuncing the decisin t eliinate the Eurpean Sftware Develpent grup in Paris -- and then rurs that we were ging t clse the Systes peratin in Ferney-Vltaire, Lng stry ade shrt is that the successin f these events and assciated lss f jbs resulted in the eplyees striking. We annunced in France that we were nt clsing Ferney-Vltaire but wuld retain it as a Eurpean refurbishent center. We als ade se ncessins n slwing dwn the reductin in frce that we wuld liked t have ade. Tw ther quick ents. We all knw that the dllar is weak in respect t freign currencies and there is great inflatin in Eurpe -- thus things are very expensive. In spite f all this knwledge, ne desn't realize HW expensive until ne ges there. (GIVE THEM THE LAUNDRY BILL STRY)

6 -6- The ther bservatin is the strength f the Eurpean labr activity. It is y persnal bservatin that we will just nt be able t ake any lay-ffs in any Eurpean untries in the future -- and the labr interests are being allwed by legislatin t bee re and re invlved in the anageent. I'll be happy t answer any questins any f yu ay have. That's a brief Marketing reprt. PGM/rej 7/7/75

7 DRAFT <D R M Price CDC speeches Charles Babbage Institute < EVJARKiETE^G REVENUES PERFRMANCE AND FRECAST JAN FEB MAR APR MAY JUN JUL AUG SEP CT NV DEC -4_j ACTUAL REVENUE BUDGET -. FRECAST

8 M C H W 0 0 n r^ i i r - 1 v r - H v v v. i < i -d- C M c <r --i i i r - i i - H r 1 in r \ r vt r^ vt r-1 v n r ^. i CT - CC C TT H CQ v r-i sj* r*. r^ r^. i <ffi H H C\ v n <r vi" T - i «<r M A r < M T < H N v r - i r^. </> - 2 S c M s v 1 1 I - H i i - - V < i - v i V H N v n r ^ < r i - h r-i v v 0 0 C I v* H C M v ta PQ r - i in n <r i-h f v. T 1 i-h <J- <^- v r - i C t - l v v CN r - I X. i - H f ^ I -n r - l C M V v r-i 1 n 1 in <r v v <l- 00 n i 1 r>. i n V v <* r>» c v r^ v* r - l v C M 1 n r - l i - H i-h - Q PQ <f r^ <t i-h >fr <r i i i - H r>. <r c <f in v i 1 i I 1 i-h 0 0 i - H C v v i - H <- - <- <- e! > 1 w CD S2 " I n j CU j ^ cfl t cd h J i - H a i H c cd >< >>. C d > c t H 4 J cd cd, U C J2 ih CJ Vl t er C J j A J - - U2 t ih 1 feq i - H t C - U 4 J 4-» * -. cd c d cd j_i i - H t u c c r-> M a cd L r ^ J C ^) H! M < > cd U H ' r - i "a t t 4-t rh HH c ^ H Cd J-t 0 0 Sh cd t Cd - a aj 2 < W cd T J D. >< CD v H jd c U S C C J -H" J-H C q s si

9 DRAFT 1975 SVlAIRKETaS^G RDERS PERFRMANCE AND FRECAST 1, Q0^'> ' > ^ a l t RDER BUDGET 885 erf $881.2M -1, z i JAN FEB MAR APR MAY JUN JUL AU<5 SEP CT NV DEC RDERS IN PRCESS B U D G E T RDERS ACCEPTED /WrVJ FRECAST 0

10 V 00 <f r>. n <j- n v i-h r^ r^. r>. v c 00 U in r»» v < n s * <- - <:. <- i-h V 0 0 r - i,-h <r v r»* <r r^ v n V in vj v in U - - <- <- 0 0 U ^ r I r^ V I sj 2 S C M < v i-h 00 C r - H - 00 c r^ V C M C M < J " c N N - H *-* &d - CQ c > <f n c i n v ^. I r>» v r*» r ^ c in v M 1 <f v in i i 0 0 V <r c v l - H 0 0 r^ n cn r H v f^» v v S A J a t] ' PQ - si- r^ 1 i-h V r^. I l <r c 0 0 i - H n v in r H f*- <- <- - i-h t t t t >. u X t CJ T J t CJ t H a cd t Cd * rh r~ > rh cd AJ ih!n f c j t rh? V\ t u t AJ c: M a c H \-' > cd t - l H r - * AJ t Cd AJ t t cd u : -a >* > C I-H* H U CD > CJ t cd x: CJ J-l C, AJ c CJ T) C cd t c M t A J CJ u C > > U cd 6 c 1 e c Q > C j C d H C M 5-1 A J c AJ AJ a c r - H M ^» -. AJ ru cd C W Q cd C H H

Getting Involved O. Responsibilities of a Member. People Are Depending On You. Participation Is Important. Think It Through

Getting Involved O. Responsibilities of a Member. People Are Depending On You. Participation Is Important. Think It Through f Getting Invlved O Literature Circles can be fun. It is exciting t be part f a grup that shares smething. S get invlved, read, think, and talk abut bks! Respnsibilities f a Member Remember a Literature