Compaq Message Board - Msg: 3627951

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Technology Stocks : Compaq

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To: Barron Von Hymen who wrote (20032)	3/6/1998 5:50:00 PM
From: Maverick	of 97611

Compaq's First Quarter To Be Below Expectations HOUSTON--(BUSINESS WIRE)--March 6, 1998--Compaq Computer Corporation (NYSE:CPQ) today said that its first quarter sales are expected to be about the same as those for the first quarter a year ago. Earnings are expected to be roughly break-even. Earl Mason, Compaq's Senior Vice President and Chief Financial Officer, reported that the shortfall was primarily associated with the North American commercial market where Compaq is taking additional pricing to meet very competitive conditions. "We looked closely at our market and business plan once it became clear that sales out of our North American commercial channels were not meeting our expectations," said Eckhard Pfeiffer, Compaq's President and Chief Executive Officer. "We are putting in place price reductions and aggressive promotions in the first and second quarter to reduce these channel inventories and accelerate the implementation of our Optimized Distribution Model (ODM)." "With these actions, we are attempting to achieve channel inventories that support ODM by the end of the second quarter," said Pfeiffer. "Our outlook for the second quarter is cautious as we continue to assess the North American commercial market environment."

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