Beaverton, Ore.--Oct. 23, 1997--Sequent Computer Systems, the world's leading developer of highly-scalable, Intel-based NUMA (non-uniform memory access) systems for the data center, announced solid financial results for the third quarterof fiscal 1997, ended October 4.
Revenue of $207.3 million, the highest third-quarter revenue and the second-highest quarterly revenue in the company's history, was up39 percent from $148.8 million in the third quarter a year ago. Net income of $10.3 million was nearly eight times net income for the third quarter of 1996, reflecting the company's largest quarterly pre-tax profit and its strongest third-quarter earnings performance to date.
John McAdam, Sequent president and chief operating officer, acknowledged that the quarter's results were particularly strong relative to last year, when the company was just beginning a major product transition and investing heavily in new sales and professional services infrastructure. Nevertheless, he pointed out that it was precisely those investments and the success of NUMA-Q 2000 that enabled Sequent to achieve solid revenue and earnings growth in a quarter where normal seasonal slowness was compounded by general weakness in technology markets.
During the third quarter, the combined strength of the company's product and service offerings enabled Sequent to win numerous large projects against stiff competition. In addition to major new accountwins at Oxford Health Plans, ICG Communications, The Coleman Company,and Carlson Hospitality Corporation, the company won multimillion-dollar projects from several existing customers, including Eckerd Corporation, the U.S. Department of Labor, State Insurance of New Zealand, UK Employment Services, and the Bank of China.
According to McAdam, the number and size of the company's major account wins are the best evidence that Sequent is beginning to reap the benefits of last year's investments and is on track to achieve its long-term growth targets.
Sequent Computer Systems
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