Compaq profit falls, sees challenging second quarter
4/23/2001 4:46:00 PM
NEW YORK, April 23 (Reuters) - Compaq Computer Corp. (CPQ) , on Monday reported its first quarter profit declined, as the world's No. 2 personal computer maker contended with a slowdown in PC sales and aggressive pricing by its rivals.
Compaq reported first quarter profit of $200 million, or 12 cents per share, excluding a one-time charge of $249 million, and net investment income of $75 million and related tax effects. That compared with net income of $296 million, or 17 cents per share a year ago.
That hit the low end of analysts' expectations, which ranged from 12 cents to 15 cents per share, with a consensus figure of 13 cents. Those estimates were already lowered when the company scaled back its outlook last month, saying investors should expect profits to be flat with last year.
Sales fell to $9.2 billion from $9.5 billion a year ago, meeting analysts' hopes for about $9.14 billion in sales.
The Houston-based company lost the No. 1 PC maker position to Dell Computer Corp. (DELL) in the first quarter, according to two top market research firms.
REUTERS
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