Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Night Writer who wrote (84319)	8/18/2000 8:07:22 PM
From: Elwood P. Dowd	Respond to of 97611

Compaq chief says PC parts shortage worst ever Friday August 18, 7:49 pm Eastern Time Compaq chief says PC parts shortage worst ever HOUSTON, Aug 18 (Reuters) - The computer industry is blessed with strong demand but plagued by its worst component shortage ever, Compaq Computer Corp. (NYSE:CPQ - news) chief executive Michael Capellas said on Friday. He said parts to make computers were in tight supply and constituted a ``very real issue'' in the months ahead. ``I don't think there's any question there's a component shortage like we've never seen in the industry. We are absolutely facing it like everybody else,'' Capellas told Reuters in an interview at the Houston headquarters of Compaq, the world's number one personal computer maker. ``We're working our relationships with our suppliers, we're tightening up our supply bases. We did rebuy some inventory, raw material, at the end of the second quarter so it's something we're all having to manage right now,'' he said. The industry has been complaining for several months about shortages of everything from memory to chips and has said that the supply issue could constrain growth for a while. Despite the difficult supply environment, Capellas stood by Compaq's previous affirmation of analyst estimates that the firm would earn around $1.08 a share in 2000. ``We have blessed the numbers for the year,'' he said. But, he added, "There's no question that demand's extremely strong, but it's a very real issue about what supply's going to be. ``If it was just a question of 'can you drive higher demand,' there's no question. But, no, we always have to balance that with the supply position and that's a real issue,'' he said. Capellas has been Compaq chief executive since July 1999. He replaced Eckhard Pfeiffer, who left the company after earnings fell two years in a row due to a glut of computers. Capellas spoke to Reuters after a press conference to announce that Compaq had agreed to sponsor the annual Houston Marathon for the next three years. To the cheers of Compaq employees, Capellas, 45, said he would run in the next race, scheduled for Jan. 14, 2001. Email this story - View most popular stories emailed More Quotes and News: Compaq Computer Corp (NYSE:CPQ - news) Related News Categories: US Market News