Growth in mainframe sales appears to contradict advocates of a computer industry trend called "downsizing."

But now, he said, he believes the company's mainframe sales will increase slightly.

Still, as a result of falling prices, the company's total revenue from mainframe sales declined in 1996.

By contrast, Hitachi's mainframe sales soared last year.

He said 1992 should see much stronger mainframe sales if the economy picks up.

The new machines cost much less than a previous generation, resulting in a drop in mainframe sales revenue compared with a year earlier.

Q: That's interesting, with mainframe sales declining so sharply.

The company is expecting another double-digit drop in mainframe sales again this year.

And mainframe sales still generate enough profit to enable it to do other things.

"The survey data we have show that mainframe sales have fallen off dramatically."