WSJ on computer makers (part 2)
by: soltrader (48/F/Toronto)
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He reckons Compaq will report revenue of $11.19 billion, up 5% from $10.65
billion pro forma in the year-earlier period. Mr. Poyner estimates Compaq's net
income will reach $652 million, or 38 cents a diluted share, compared with last
year's $733 million, or 42 cents a share pro forma.
Mr. Poyner says Compaq is continuing to cut its work force following the
purchase last year of Digital Equipment Corp. He expects the company will
finish the quarter with about 74,000 employees, down from about 84,000 just
after the acquisition.
Sun Microsystems Inc. is expected to have a solid quarter, aided by strong
sales of computer servers amid Internet growth. Because of delays in a new
release of Microsoft Corp.'s Windows NT operating system, sales of Sun
systems based on a rival operating system called Unix are expected to be
strong, analysts say.
Mr. Milunovich expects Sun's sales in the just-ended period, the company's
fiscal second quarter, to reach about $2.8 billion, up 14% from $2.45 billion
last year. Net income is expected to rise to $260 million, or 66 cents a diluted
share, compared with $223 million, or 57 cents a share in the prior year's
period.
Hewlett-Packard Co.'s first fiscal quarter ends later this month, and analysts
expect the company to record respectable results. H-P's printer sales "look
strong," according to Mr. Milunovich. However, he expects sales of
Unix-based servers to be weak due to delays in customer orders prompted by
the recent introduction of a new product line. Analysts also expect H-P to be
hurt in the quarter by weakness in Asia. "They do not see a turn there yet,"
says Mr. Milunovich.
Ms. Conigliaro expects H-P's revenue to reach $12.3 billion, up about 4% from
$11.82 billion in the year-ago period. She believes net income will hit $856
million, or 81 cents a diluted share, down from $929 million, or 86 cents a
share. |
