Sequent's Loss Was No Glitch After All
For all the talk of a recovery, there's meager evidence of it in computers. On July 2, Sequent Computer Systems warned of a second-quarter loss "significantly" higher than the $7 million first-quarter loss that analysts thought was just a glitch.
Sequent's problem: sharply falling sales of its large transaction-processing systems to Unisys, which resells them under its own name. As a result, Sequent is exiting the private-label business and will lay off up to 9% of its 1,700-person staff.