Compaq cuts outlook, takes $500 mln charge
NEW YORK, Oct 1 (Reuters) - The No. 2 personal computer
maker Compaq Computer Corp. <CPQ.N>, citing the decline in the
economy, on Monday said it expects to report a third quarter
operating loss and lower than expected revenues.
The company also said it would take a charge of $500
million related to its investment in Internet holding company
CMGI Inc. <CMGI.O>.
It expects revenue of $7.4 billion to $7.5 billion and an
operating loss of 5 cents to 7 cents a share. Analysts had
expected the company to post earnings of 5 cents a share in the
third quarter, 10 cents a share in the fourth quarter and 31
cents for the year, according to Thomson Financial/First Call.
Analysts had also foreseen revenues of $8.2 billion in the
third quarter, $8.9 billion in the fourth quarter and $34.97
billion in 2001.
((Caroline Humer, New York Technology Desk, 1 646
223-6181))
REUTERS |
