5fr speaks-------
NEW YORK, April 11 (Reuters) - Weak business computer
demand, stepped-up price competition and a drive to shore up
its No. 1 market position led to Compaq Computer Corp.'s
<CPQ.N> impending revenue shortfall, its CEO said on Sunday.
In a phone interview, President and Chief Executive Eckhard
Pfeiffer elaborated on Compaq's announcement on Friday that
first-quarter revenues would add up to only $9.4 billion, or 6
percent less than the $10 billion Wall Street forecast.
Compaq said in a statement on Friday that it expected to
post a profit of about 15 cents per share, far below the
analysts' consensus estimate of 31 cents a share found in a
prior survey by First Call Inc.
Pfeiffer would not comment on how a 6 percent decline in
top-line revenues could translate into a 50 percent drop in
profits. Compaq is still calculating how PC price cuts and
lower margins will affect Compaq's bottom line, he said.
"When demand is not as strong as expected ... (and) if you
intensify some of your pricing ... that in turn does not only
have a margin impact, but a sales impact," Pfeiffer said of the
trickle down-effect on Compaq's results last quarter.
HOLD MARKET SHARE
COMPAQ <CPQ.N> CEO SAYS COMPANY ON TRACK IN Q1 WITH
COST-CUTTING PLANS
REUTERS
*** end of story ***
(REUTERS) COMPAQ <CPQ.N> CEO SAYS Q1 SACRIFICED SOME PROFIT MARGIN TO
COMPAQ <CPQ.N> CEO SAYS Q1 SACRIFICED SOME PROFIT MARGIN TO
HOLD MARKET SHARE
COMPAQ <CPQ.N> CEO SAYS COMPANY ON TRACK IN Q1 WITH
COST-CUTTING PLANS
REUTERS |
