Toshiba, Microsoft, Netscape and UUNET Named Among Top Revenue Producers in the Computer Reseller News 1997 Market Leaders Report

Available in the May 26 Issue, Annual Report Focuses on the Industry's Top Revenue-Generating Companies

PRNewswire
MANHASSET, N.Y.
May 27, 1997

The May 26 issue of CMP's Computer Reseller News reveals the publication's annual Market Leaders Report, a listing of the computer industry's largest revenue-producing companies. In all, Computer Reseller News reviewed 20 different market sectors, and following are four of the companies named number one to the Market Leaders list, their '96 revenues and the market sector in which they appeared: Toshiba America Information Systems Inc., $5.9 billion, Notebooks; Microsoft Corp., $4.56 billion, Desktop Applications; Netscape Communications Corp., $346.2 million, Internet Software; UUNET Technologies Inc., $253.2 million, Internet Service Provider.

In addition to ranking the top-performing companies by revenue, the Computer Reseller News Market Leaders report also provides overviews of each market sector. Following are highlights from the report:

Notebooks: Toshiba America Information Systems Inc. held its own in the expanding-faster-than-expected notebook market, despite early struggles to deliver enough product to resellers. Other companies did not fare as well in this fast-paced category that saw many manufacturers rush to be the first to market with new features. Notebook sector Market Leader number seven, Apple Computer Inc. (NASDAQ: AAPL), shut down production of the PowerBook 5300 last May to fix problems, and Notebook sector Market Leader number 10, AST Research Inc. (NASDAQ: ASTA), also suffered a 26 percent drop in sales.

Desktop Applications: Microsoft Corp.'s (NASDAQ: MSFT) applications revenue grew by nearly $1 billion, and according to a Microsoft representative quoted by Computer Reseller News, the company expects to sustain that growth mainly because of the Internet and intranet capabilities of Microsoft Office. Companies who have felt the power of Microsoft's hold on the market include Corel Corp. (NASDAQ: COSFF): While Microsoft Office customers were in what one representative called "decision mode," Corel saw sales of its Java-based office suite surge and then soften when Microsoft launched Office 97.

Internet Software: "The Internet, as a commercial opportunity, was born in 1994. And in 1996, it went through puberty," the Computer Reseller News Market Leaders report states. The kind of tumult to which the publication is referring is evidenced by companies such as Netscape (NASDAQ: NSCP). On one hand, the company saw its revenue quadruple in 1996 and on the other, it saw its market share yield to Microsoft. Microsoft loomed large as an agent of influence in this market, as two Network-management vendors, NetManage Inc. (NASDAQ: NETM) and FTP Software Inc. (NASDAQ: FTPS) -- Market Leaders number four and five, respectively, in the Internet Software sector -- saw their revenue plunge after Microsoft said it would include the core TCP/IP infrastructure in Windows NT.

Internet Service Providers (ISPs): UUNET Technologies Inc. (NASDAQ: WCOM) experienced smooth sailing since its decision three years ago to focus on corporate customers rather than the consumer market. According to Computer Reseller News, it has vastly outpaced its rival (and number two in the ISP sector) MCI Communications Corp. (NASDAQ: MCIC), which had '96 revenues of $165 million.

Enclosed is the list of the companies that ranked number one in all 20 categories of the Computer Reseller News Market Leaders report. The full list and accompanying report are also available on Computer Reseller News Online at http://www.crn.com/.

Published by CMP Media Inc., Computer Reseller News has a circulation of more than 115,000 and reaches readers with the product trends and industry news needed to sell comprehensive technology solutions. The publication's news coverage is also available via e-mail through CRN Direct. This customizable daily newsletter -- available in both text and full HTML formats -- allows users to choose up to 20 companies, products and trends to track.

Registration for CRN Direct is available through CRN Online.

CMP Media Inc. provides publishing, marketing and information services to the broad high-technology spectrum -- the builders, sellers and users of technology -- through print and electronic media. All of CMP's publications and online products can be accessed through the company's TechWeb® site at http://www.techweb.com/. Along with Computer Reseller News, CMP's Channel Group print titles include Computer Retail Week and VARBusiness.

-0- 05/27/97

SOURCE: CMP Media Inc.

CONTACT: Leslie Dunbar, 516-562-7040 or ldunbar(at)cmp.com, or Catherine
Jarrat Koatz, 516-562-7827 or ckoatz(at)cmp.com, both of CMP Media


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