Mikey-- from Tues evening until Fri morning little can change,,, not what I would call consistant,,,
HOUSTON, Jan 28 (Reuters) - Compaq Computer Corp. <CPQ.N>
Chief Executive Michael Capellas said on Friday he believes the
company can be reasonably expected to grow its revenues by 10
percent to 12 percent in the year 2000, more than double the
rate of revenue growth in 1999.
At a meeting with Wall Street analysts and money managers
held to set forth the company's business strategy and financial
outlook for the coming year, Capellas appeared to step back
from the 15 percent target for revenue growth he had set on
Tuesday during the company's 1999 year-end earnings report.
"A 10 to 12 percent growth rate is a reasonable growth rate
to model," Capellas said, guiding analysts on how to view the
company's revenue expectations in 2000. By contrast, revenues
grew by 5 percent in 1999.
"Why did we throw the 15 percent target out?" the Chief
executive of the world's No. 1 personal computer maker and No.
2 computer maker overall said of his aggressive growth
expectations this year.
"That is an opportunity. I like to be bold (but) I don't
like to be stupid," he said, seeking to convince many doubters
in the audience that the Houston-based company's leading
position in high-growth computer markets will allow it to meet
his projections.
The biggest driver of revenue growth in the coming year
will come from the company's enterprise computing unit, which
accounted for 52 percent of revenue in 1999. He set a target of
14-to-17 percent growth in 2000 for the business.
The unit, which consists of powerful servers used to manage
other computers, data storage and related services, grew just 6
percent in 1999, ending the year at $20.1 billion.
The commercial PC business should grow between 12 and 15
percent in 2000 from the $12 billion, or 4 percent growth rate
in 1999. However, consumer PCs, which saw rapid growth in 1999
are likely to decellerate in 2000, Capellas said, growing
between 12 and 17 percent, compared with the $6 billion or 22
percent growth rate seen in 1999.
((--New York Newsdesk (212) 859-1700))
REUTERS
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