P.M. BRIEFING : Wang Suffers $424-Million Loss
LOWELL, Mass. — Wang Laboratories Inc., formerly one of the computer industry’s top performers, posted a $424.3-million loss for its latest fiscal year today and said it is suspending its dividend while it restructures operations to cut costs.
Wang stock was off 37.5 cents at $6 on the American Stock Exchange in heavy early afternoon trading, as Wall Street reacted to what one trader called a “dreadful†earnings report.
The company’s second straight money-losing quarter gave it a net loss for the year ended June 30 of $424.3 million, or $2.59 a share, compared with a profit of $92.7 million, or 56 cents a share, in the previous year.
Wang’s long profit slide has been blamed on its slowness to switch to operating systems that are compatible with computers made by other companies.
