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

To: rich evans who wrote (77011)	1/28/2000 12:55:00 PM
From: P P Bravo	Read Replies (1) \| Respond to of 97611

Friday January 28, 12:42 pm Eastern Time Compaq CEO sees 2000 revenue growth of 10-12 pct HOUSTON, Jan 28 (Reuters) - Compaq Computer Corp. (NYSE:CPQ - news) Chief Executive Michael Capellas said on Friday he believes the company can be reasonably expected to grow its revenues by 10 percent to 12 percent in the year 2000, more than double the rate of revenue growth in 1999. At a meeting with Wall Street analysts and money managers held to set forth the company's business strategy and financial outlook for the coming year, Capellas appeared to step back from the 15 percent target for revenue growth he had set on Tuesday during the company's 1999 year-end earnings report. ``A 10 to 12 percent growth rate is a reasonable growth rate to model,' Capellas said, guiding analysts on how to view the company's revenue expectations in 2000. By contrast, revenues grew by 5 percent in 1999. ``Why did we throw the 15 percent target out?' the Chief executive of the world's No. 1 personal computer maker and No. 2 computer maker overall said of his aggressive growth expectations this year. ``That is an opportunity. I like to be bold (but) I don't like to be stupid,' he said, seeking to convince many doubters in the audience that the Houston-based company's leading position in high-growth computer markets will allow it to meet his projections. The biggest driver of revenue growth in the coming year will come from the company's enterprise computing unit, which accounted for 52 percent of revenue in 1999. He set a target of 14-to-17 percent growth in 2000 for the business. The unit, which consists of powerful servers used to manage other computers, data storage and related services, grew just 6 percent in 1999, ending the year at $20.1 billion. The commercial PC business should grow between 12 and 15 percent in 2000 from the $12 billion, or 4 percent growth rate in 1999. However, consumer PCs, which saw rapid growth in 1999 are likely to decellerate in 2000, Capellas said, growing between 12 and 17 percent, compared with the $6 billion or 22 percent growth rate seen in 1999.