07/15/96 LIFE IS LIKE A LOUSY BOX OF CHOCOLATES

LIFE IS LIKE A LOUSY BOX OF CHOCOLATES

IN FORREST GUMP, TOM Hanks's slow-witted hero appears with John F. Kennedy and other long-dead figures, courtesy of Discreet Logic's computerized imaging systems. But Discreet's magic hasn't helped its stock.
Since the Montreal company went public in June, 1995, it fell to 6 3/4--38% off its opening price and 80% off its high, split-adjusted. The biggest decline came a month ago, when it reported a large ($15 million) loss and an almost 50% sales drop for its latest quarter.
Chief reason: Discreet admits overestimating demand for its main special-effects product, FLAME. And sales of FIRE, a new editing software suite, are slow because the package is bug-ridden Also, key execs are leaving--among them CEO David Macrae, citing policy differences with the board. Discreet, now looking for a new chief, hopes a yet-to-be unveiled restructuring will fix things.
By Lisa Sanders