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Amdahl blames loss on low sales

Amdahl posts a third-quarter loss as sales and profit margins on its IBM-compatible products declined.

Amdahl (AMH) today posted a third-quarter loss as sales and profit margins on its IBM-compatible products declined.

The mainframe computer vendor reported a loss of $4.8 million, or 4 cents a share, for the quarter ending September 27. In the same period a year ago, the company posted a profit of $20 million, or 17 cents a share.

Amdahl performed better than expected. Analysts estimated a loss of 17 cents for the quarter. Revenues rose to $439.8 million for the quarter, up from $350 million a year ago.

Software and services contributed to 65 percent of the company's revenue pie--driven by an 11 percent growth in its consulting and professional services business. The company also recently set up a new business unit to focus on software conversion services to deal with the anticipated date recognition problems that will occur when the year 2000 arrives.