Compaq's fourth quarter earnings have increased by 14 per cent after it reported a net income of $758 million -- up from $667 million on the same period in 1997. Revenue for the year leapt 48 per cent to $10.86 billion from $7.32 billion in 1997 although some of this gain is a reflection of Compaq's acquisition of Digital in June of last year. "The fourth quarter revenue and earnings results represent new records for Compaq and a key milestone in our successful integration of Digital Equipment Corporation," said Eckhard 'Warehouses' Pfeiffer, Compaq's president and CEO "Sales out of the distribution channels grew 43 per cent over the fourth quarter of 1997, a growth rate estimated at over three times the market." Pfeiffer was equally bullish about the prospects for the company in the coming year adding that he saw strong demand for Compaq products and services and the opportunity for continued market share gains and revenue growth. Yesterday, Compaq confirmed its intention to spin off AltaVista and create a separate company for its search engine, as exclusively revealed here. ® See also Compaq results due out today, maybe