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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (63319)	6/17/1999 8:43:00 AM
From: rupert1	Respond to of 97611

Compaq Expects a Loss for Quarter As It Moves to Realign Its Business An INTERACTIVE JOURNAL News Roundup HOUSTON -- Compaq Computer Corp., still struggling amid shifts in the personal-computer industry, said it expects to post a second-quarter loss and unveiled a restructuring that will require a big third-quarter charge. The giant maker of PCs, which ousted its chief executive officer after a disappointing first quarter, predicted a loss of 15 cents a share for the quarter. The news surprised Wall Street analysts, who had predicted Compaq, despite its problems, would post a 20 cent a share profit. Moreover, Compaq said it will record a substantial charge in the third quarter to cover the costs of what it termed a "realignment" of its business. That revamp is expected to eliminate $2 billion in ongoing operating costs, it said. It didn't estimate the size of the planned third-quarter charge. "The operational issues that affected Compaq in the first quarter continued to influence our business this quarter," said Benjamin M. Rosen, chairman and acting chief executive officer, in a statement. "Pricing pressures in the PC segment, inadequate revenue growth and a noncompetitive cost structure are the contributing factors to our expected shortfall," he said. Analysts, in the past, have faulted Compaq for not moving more quickly to implement a so-called build-to-order manufacturing plan, a direction that has been taken by the PC industry as companies complete more sales directly with customers -- via the Internet, for instance. Mr. Rosen said revenue and gross margin are expected to be flat to down sequentially from the first quarter, while operating expenses will increase from the first quarter, partly because of goodwill amortization costs associated with Compaq's recent Internet-related acquisitions.

To: Elwood P. Dowd who wrote (63319)	6/17/1999 8:44:00 AM
From: williet	Read Replies (1) \| Respond to of 97611

THE LAWSUITS ARE ABOUT TO BEGIN ONCE AGAIN. THIS TIME MANY MANY MORE WILL JOIN THE FORAY. THIS COMPANY IS ABOUT TO IMPLODE, GO DELL. AT LEAST MD DOES NOT LIE TO HIS SHAREHOLDERS AND HAS A GRASP OF THE REALITY OF THE WORLD OF E-COMMERCE TODAY. GOOD BYE CPQ..... ORLANOD WILLIE

To: Elwood P. Dowd who wrote (63319)	6/17/1999 8:46:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

Frankfurt CPQ $20.14 I don't understand this. Amortization costs should not be included in operating costs. "....while operating expenses will increase from the first quarter, partly because of goodwill amortization costs associated with Compaq's recent Internet-related acquisitions."

To: Elwood P. Dowd who wrote (63319)	6/17/1999 9:07:00 AM
From: Windseye	Read Replies (1) \| Respond to of 97611

" Could CPQ see 29 by 12/31? Is a new 52 week high possible in 2001? El" Just barely... the fog regarding this company is lifting... it is now being seen that in this particular market, given Y2K, effective boxmakers, and laudable IBM Enterprise Service biz, that CPQ is over it's head in these competitive waters. There are no magic bullets that will turn this situation around; seems like only effective execution of all the existing forcasted directions will pull it out of the doldrums (this reorg, 2 bil write off in Q3, getting by Y2K, "matching e-machines and other cheap box makers", and getting some pizazz into the AV internet strategy (still doggish)). They can do it, but not quickly... if they could read the future market and by so doing announce a solution before the problem is actually seen by others, they would be able to accelerate rapidly, but so far they seem to be stodgy... unable to really excite the market with either their "vision", or their execution. So... I hold one small bundle until mid 2000... Doug