Feeds

Compaq hits reduced Q4 targets

Difficult first half

  • alert
  • submit to reddit

Security for virtualized 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

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.