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

To: Captain Jack who wrote (67293)	9/6/1999 1:17:00 AM
From: Captain Jack	Read Replies (1) \| Respond to of 97611

SINGAPORE, Sept 6 (Reuters) - Asian server market revenues rose 47 percent on year in the second quarter, breaking the $1.1 billion mark, market research firm International Data Corporation (IDC) said on Monday. The firm said that server revenue for the Asia Pacific, excluding Japan, reached a record quarterly mark on economic improvement, Y2K-related spending and the Internet. Y2K, or the millenium bug problem, refers to a coding glitch that could cause some computers programmed to read year dates in two digits to misread the year 2000 as 1900. Some fear this could cause computers to malfunction or fail. With more companies ready for Y2K by the end of the first half, demand for Y2K solutions could fall in the second half, IDC said. Avneesh Saxena, senior market analyst for servers at IDC, said there was a "strong possibility" a drop would occur but had no specific forecast for demand. He said server growth in the region was largely supported by government investment and that from the telecommunication, finance, transportation and distribution industries. Sales in China, Australia, South Korea and Taiwan contributed around 75 percent of regional server revenue in the second quarter, with the greatest annual growth in Korea and Taiwan. Server end-user revenue in Korea in the second quarter more than doubled to $230.65 million, compared with the same period a year earlier, IDC said. Countries such as Indonesia, Malaysia, Thailand and the Philippines contributed only around eight percent to total revenue, but Saxena said they would see higher contributions in the near future. "In the last year, they've taken a major hit due to the recession, and they were growing well in 1997," he said. "They have dropped by an average of 47 percent since then, but they're coming out of their recessions and they should be back into action within the next two years." IDC said around 80 percent of total server revenue came from the world's top vendors, International Business Machines Corp <IBM.N>, Hewlett-Packard Co. <HWP.N>, Compaq Computer Corp <CPQ.N> and Sun Microsystems Inc. <SUNW.O>. ((Serena Ng, (65) 870-3080; Fax (65) 776-8112, Email: singapore.newsroom@reuters.com)) REUTERS