DIGITAL Equipment Corporation yesterday reported a $66 million (£41 million) first quarter loss, or 48 cents a share, after net income of $48 million or 26 cents a share for the same period last year.

The group said total operating revenue in the quarter, which ended on September 28th, came to $2.912 billion, down from $3.271 billion in first quarter 1995.

However, the company said that its Irish sales and services business remained buoyant and recorded a 13 per cent sales increases on the same quarter last year.

Digital employs over 1,100 people in Galway and Dublin. Commenting on the results, its chairman, Mr Robert Palmer, said: "We found it necessary at the beginning of this quarter to implement a new sales model that would increase the extent and effectiveness of account coverage reduce conflict among our direct and indirect sales channels, and improve responsiveness and service to our customers "While that change was necessary, it got an historically slow quarter off to an even more sluggish start. We continue to improve our sales organisation and have recently put our entire worldwide enterprise sales force under one management," Mr Palmer noted. "The turnaround that we continue to manage is challenging and extensive in scope.

Despite progress we have achieved in the last two years. these results simply are not where they should be."