Digital Chairman Robert B. Palmer Outlines Company's Strategy At Annual Meeting Of Shareholders
Digital's Momentum Fueled by Strengthened Financial Position, Unified Sales
and Marketing Structure and Early Lead in High-Growth Markets
Internet Business Solutions and Internet-based Enterprise Computing Are
among the Key Elements of Digital's Growth Strategy
BOSTON, Nov. 13 /PRNewswire/ -- At the company's Annual Meeting of Stockholders held today at the World Trade Center, Digital Equipment Corporation (NYSE: DEC) Chairman Robert B. Palmer outlined the company's strategy, which is built on Digital's strengths and is designed to capitalize on opportunities in the marketplace. Palmer cited how key developments this year -- including the establishment of a single worldwide sales and marketing organization, a single products division, a stronger balance sheet, and settlement of a lawsuit with Intel Corporation -- significantly bolster Digital's future prospects. "I am confident that this is the year that Digital will begin to grow again," said Palmer. "I am confident because of the talent and dedication of our employees, our commitment to customer and partner satisfaction, and our ability to increase shareholder value through the execution of a sound business strategy. "Based on the extremely positive response to our agreement with Intel, many independent analysts agree with this outlook," he added. Palmer emphasized the important role the Internet is already playing in enterprise computing, predicting that the Internet will become the universal computing platform of choice. "Digital's mission," he said, "is to deliver, with our partners, Internet business solutions based on high-performance platforms and services. "Our objective is very simple -- we want customers and partners to view Digital as the most trusted provider of Internet-based solutions for the enterprise," stated Palmer. "This is a natural extension of the company's historic strengths in providing networked and distributed computing architectures for the enterprise; takes advantage of our leadership in delivering high-performance 64-bit platforms and operating systems; builds on our history as an Internet innovator; and relies on our ability to provide systems integration, services and support on a worldwide basis. Digital is only one of a few companies that can deliver the systems, software, storage, services, and partnerships that make up an Internet-based enterprise." These new solutions are now marketed more aggressively -- and with greater global reach and coordination -- under Digital's single worldwide sales and marketing organization -- which already has improved customer service and re-energized the Digital brand, said Palmer. Digital's industry-leading 64-bit Alpha technology will remain a critical element of the company's future strategy and a key enabler for both enterprise and Internet business solutions, which are by their nature high-performance business solutions. "We believe that one of the preferred platforms for Internet solutions will be Digital's 64-bit Alpha systems," said Palmer. "With our agreement with Intel, Digital is in a stronger position than ever to assure customers and partners that the Alpha architecture is something that they can depend on for the long-term." Intel-based systems will remain critical to Digital's platform strategy -- with x86 systems today and IA-64 in the future -- and will further extend Digital's growth this year. Plans to port 64-bit Digital UNIX to IA-64, and to work with Microsoft as it develops a common programming model for 64-bit Windows NT on Alpha and IA- 64, will allow Digital to increase its leadership in enterprise-strength Windows NT and Digital UNIX, according to Palmer. "Digital works with its customers to find the best solution to meet their computing needs_we propose the operating system most appropriate for the specific problem the customer is trying to solve," he said. Already one of the top service providers in the industry, Digital's Worldwide Services organization will be a primary driver of the company's growth this year. "Today, customers spend 47 percent of their IT budgets on services, and industry projections indicate that spending will be closer to 60 percent by the year 2000. We are in a strong position to take advantage of this growth," said Palmer. During the Annual Meeting proceedings, Vernon R. Alden, Thomas L. Phillips and Delbert C. Staley were re-elected to the Board of Directors. In addition, advisory stockholder proposals relating to declassification of the Board of Directors and to redemption of the Corporation's Stockholder Rights Plan were passed. Proposals relating to the hiring of an investment banker and to separating the offices of chairman and president were rejected. Digital Equipment Corporation, recognized for product and service excellence, is a leading supplier of high-performance, Web-based computing solutions which help enterprises compete in the global marketplace. Digital gives its customers a winning Internet advantage through a comprehensive portfolio of Internet solutions based on award-winning systems, advanced networking infrastructure, innovative software, and industry applications - including those from its business partners. The expertise and experience of Digital employees help customers plan, design, implement, manage and support Internet solutions in countries around the world. For the latest company information, visit Digital on the World Wide Web at http://www.digital.com. Note: All company or product names may be trademarks or registered trademarks of the companies with which they are associated.
SOURCE Digital Equipment Corporation
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