Feeds

Compaq joins profit warning parade

Those pesky American consumers again

  • alert
  • submit to reddit

Seven Steps to Software Security

Compaq, the world's biggest PC maker, is the latest tech firm to issue a profits warning. And once again (viz. Gateway, Apple, Intel, AMD, world+dog) it blames the lack of consumer buyers in America.

Big Q says it will undershoot previously announced sales targets by eight to ten per cent - it estimates it will now generates sales of $11.2-11.4 billion in Q4. Analysts polled by First Call reckon profits will now be 28-30 cents per share, compared with the previous consensus of 36 cents per share.

In a conference call, Compaq CEO Michael Capellas said that problems surfaced only in early December. "October looked good. In November we were still on track." Typically, December accounts for 45 per cent of Compaq's Q4 sales - as retail customers make their Christmas purchases.

So what's gone wrong this year? If it's computer saturation in American homes, then the PC makers and their component suppliers are in big trouble. But if it is, as some Reg readers suggest, a temporary case of retail FUD in the aftermath of a very messy election, then the Supreme Court annointment of Gush or Bore, will see America return to business as usual.

Compaq reckons it will get back on track next year, forecasting ten per cent higher revenues in 2001. With its corporate customers, big service busines and huge global footprint, Big Q remains better off than just about any PC maker. ®

Boost IT visibility and business value

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.