"We believe we are weathering a storm in which too many manufacturers were chasing the same recession-affected consumer market. I believe a lot of lessons have been learnt by some of our major competitors and once their inventories have been depleted the market will come back profitably for Amstrad," he said.

While Amstrad's computer operations have suffered alongside the rest of the computer industry, the company's fortunes in the satellite TV stakes have improved.

To counter the changes, Amstrad has just taken the wraps off a UKP 4 million advertising campaign to promote the Z80-based PCW series of micros, as well as a new generation of fax machines. The advertising campaign will run for the next three months.

Amstrad blames a number of problems as causing the losses. These problems include the company's recent move out of the games and entertainment business, a market area that always contributed to the company's success during the Christmas run-up season.

Just how poorly Amstrad has done in the computer business this past few months is illustrated by the latest results from market research company Context.

According to Context's November '91 figures Amstrad had just 1.9 percent of U.K. market volume during November, down from 2.9 and 5.3 percent, respectively for the preceding three and 12-month periods.

All is not loss, however. Amstrad cut its pricing on many of its PCs just before Christmas, a factor which is likely to boost interest in the company's PCs.

(Steve Gold/19920211/Press & Public Contact: Amstrad - Tel: 0277- 228888)

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