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Technology Stocks : All About Sun Microsystems

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To: Wayners who wrote (41002)2/5/2001 5:42:25 PM
From: A.L. Reagan   of 64865
 
Re: servers. Curious report on CPQ today: Compaq shift too late to save margins

By Chris Kraeuter & Jason Margolis, CBS.MarketWatch.com
Last Update: 2:46 PM ET Feb 5, 2001 NewsWatch

SAN FRANCISCO (CBS.MW) -- Compaq spoke Monday at the Banc of America Securities Technology Week conference in San Francisco about its business shift away from servers to lower cost, higher margin appliances like personal digital assistants and other consumer electronics devices.



As for the current state of business, Compaq Senior Vice President Mary McDowell said that first-quarter results will reflect a gross margin decline of a "few percentage points" due to a more competitive environment.

She did not anticipate any changes to inventory and that the company remains "very bullish on corporate investments that continue to occur."

Compaq (CPQ: news, msgs) shares closed down 7 cents, or 0.3 percent, to $23.90.
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