Feeds

Compaq hits reduced Q4 targets

Difficult first half

  • alert
  • submit to reddit

Next gen security for virtualised datacentres

Compaq hit its (reduced) Q4 targets but warns that a rocky road lies ahead for the industry in the first half of 2001.

Michael Capellas, Compaq's CEO, says the company remains comfortable with "analyst estimates of earnings per share growth in the 20-25 per cent range."

The world's biggest PC maker produced operating net income of $515 million on revenues of $11.5 billion for the quarter, but add in a one-off hit of $1.8 billion, mostly to cover the writedown of the company's holding in CMGI (acquired through the sale of AltaVista) and the company tumbles into a net loss of $672 million.

And, presumably on the back of strong server and storage sales, Compaq managed to screw out an extra 1.5 gross margin points (compared with Q4 1999), taking it to 23.7 per cent, and it managed to shave one full point off operating expenses.

Revenues in the quarter were up ten per cent on the same time this year - but that's after the multinational translates all its sales into dollars. The company points out that sale in 'constant currency' were up 19 per cent. Indeed it refers to 'constant currency' quite a lot in its press release announcing the Q4 results - as it makes growth look quite a lot better.

For the full year, revenue was $42.4 billion and net income was $1.7 billion. ®

Related LinksCompaq Q4 results press release
Compaq Q4 results audio webcast

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?