Business: Xerox Drops Computers

In 1969 high-flying Xerox Corp. was so anxious to get into the computer business that it paid more than $950 million in stock to buy Scientific Data Systems, a California-based mainframe maker. Now the copying-machine giant is just as anxious to get out; last week it announced that it would stop making basic computers over the next year or so, thus joining the list of corporate giants that have failed to dent the computer market dominated by IBM (others: General Electric, RCA). Xerox deducted from second-quarter earnings $84.4 million in estimated costs for discontinuing the computer business, reducing its net for...