CPQ . WSJ
by: sergethechef
10/9/00 12:10 am
Msg: 187559 of 187576
October 9, 2000
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Computer-Systems Makers Expected
To Post Strong Third-Quarter Results
By WILLIAM M. BULKELEY
Staff Reporter of THE WALL STREET JOURNAL
Big computer-systems makers are expected to report strong
gains compared with the year-ago period when corporate
customers held down spending in anticipation of the Y2K
transition.
EDS Wins Big Navy Computer Contract
Strong sales of computers and services for Internet sites and
computer rooms make analysts generally optimistic about
results in the recently completed quarter, despite foreign
currency weakness and a slowdown in the growth of the
personal-computer business. Last year's quarter was hampered
because computer buyers reined in spending to focus on making
sure their systems could handle the turn of the millennium,
which was expected to shut down some computer software
Compaq Computer Corp., Houston, rebounding strongly from last
year's problems, will have "a very strong quarter," says Stephen
Dube of Wasserstein Perella. The PC business, which accounts
for about one-third of revenue, lost money for several quarters,
but it broke into the black in the June quarter. Mr. Dube thinks it
will at least break even for the third quarter, and won't hurt
results.
Mr. Dube thinks Compaq's revenue rose 16% to $10.70 billion in
the quarter from $9.21 billion a year ago. He says Compaq's
sales of servers based on Intel Corp. microprocessors have
"done well," and new servers based on Compaq's own Alpha
chip are coming. Compaq's growth prospects will look even
stronger if it can "re-energize the services business which hasn't
lived up to expectations," says Mr. Dube. |
