Compaq to make MegaLoss

Q2 won't be good for Big Q

The Wall Street Journal is reporting today that Compaq will make a huge loss when it delivers its results next Wednesday. According to the newspaper, Compaq is likely to report a loss of as much as $230 million for its Q2, which contrasts very badly with its previous Q1 when it made a $281 million profit. And revenues are expected to be flat for the quarter, according to the report. The WSJ claims that part of the reason for the anticipated loss is because it has lost high-end customers for its Tandem and Alpha boxes. Its PC division does not make high margins on its products, although Compaq's $7 billion deal with 16 Taiwanese manufacturers (see separate story), is expected to make it more competitive with arch-rival Dell. At present, the Big Q is ruled by the Ben-Frank-Ted triumvirate, a bit like ancient Rome. ®

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