Feeds

Compaq hits reduced Q4 targets

Difficult first half

  • alert
  • submit to reddit

Remote control for virtualized desktops

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
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BIG FAT Lies: Porky Pies about obesity
What really shortens lives? Reading this sort of crap in the papers
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
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?