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

To: Jimbo Cobb who wrote (70734)	11/1/1999 6:58:00 PM
From: rudedog	Read Replies (2) \| Respond to of 97611

jimbo - well I know for sure they're not making anywhere near as much money as SUNW in servers SUNW did a total of $11.7B last year, with a similar mix to CPQ's enterprise group, which made over $20B. So CPQ made a lot more in revenue terms. SUNW had earnings of $1.04B for fiscal 1999. CPQ had enterprise group earnings of $600M in 3Q alone. They did not break out earnings before, but at a minimum they would have done more than $2B annually. So here again, CPQ had about twice SUNW's earnings. In Unit volume there is no contest, don't even go there. CPQ also displaced SUNW as the #1 seller of webservers - SUNW went from 25% share in 1997 to less than 13% today, CPQ went from 12% in 1997 to over 31% today. I don't think I'm the one who is brainwashed, you should check and see what Scott put in your kool-aid. Now let's talk about GTW. In revenue terms, GTW did $7.4B for the 4 quarters just completed. They had earnings for that period of $420M. I don't know how you would split GTW's consumer business from their corporate (mostly small business) and server sales. GTW shipped 1.2M units in 3Q and less than 4M for the period. Based on GTW unit numbers in the server space, PC sales of all types appear to be about 80% of the total, or about $5.9B. Margin for servers tends to be about twice PC margins. I would therefore peg GTW PC-only earnings at about $250M for the period. Applying the same approach to GTW's most recent quarter, they show $109M total earnings, or about $65M for PCs alone. CPQ shipped 3.8M PC units for the quarter alone and close to 13M units for the period. GTW does not break out consumer sales, but CPQ consumer group sales alone (about 1/3 of CPQ's PC sales in 3Q) were over $1.5B for 3Q and they made $65M . So it looks to me like CPQ's consumer division alone sells about the same as ALL of GTW's PC sales, and makes the same profit on slightly lower revenue. So I don't think you did your homework on GTW either...