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To: Road Walker who wrote (114859)	10/24/2000 4:41:10 PM
From: Tony Viola	Read Replies (4) \| Respond to of 186894

Compaq blew the doors off the sucker! Tuesday October 24, 4:31 pm Eastern Time Press Release SOURCE: Compaq Computer Corporation Compaq Reports Record Third Quarter NEWS SUMMARY - Revenue Up 22 Percent Over Q3 1999 - Operating Profit Increases Five-Fold - Industry Standard Servers, Enterprise Storage and Consumer Revenue Grow More Than 40 Percent - Commercial Personal Computing Revenue Up 28 Percent HOUSTON, Oct. 24 /PRNewswire/ -- Compaq Computer Corporation (NYSE: CPQ - news) today announced third quarter 2000 net income of $550 million, or $0.31 per diluted common share, an increase of $0.23 per diluted common share or 288 percent year-over-year. Excluding net investment income of $25 million after tax, earnings per diluted common share were $0.30. Operating profit for the third quarter was $789 million, an increase of $669 million or 558 percent over the prior year period.(A) Compaq reported worldwide revenue of $11.2 billion for the quarter ended September 30, 2000, an increase of 22 percent over the prior year period. Adjusted for the effects of currency, revenue grew 26 percent. ``Our results clearly demonstrate our tremendous momentum in the marketplace,'' said Michael Capellas, Chairman and Chief Executive Officer. ``Our revenue was the highest in Compaq's history. We increased our operating profit five-fold over a year ago. We increased gross margin and reduced expenses. And, most importantly, we are delivering the industry's broadest portfolio of innovative Internet products and solutions to our customers.'' Compaq delivered strong revenue growth in all regions: North America grew 27 percent; Europe, Middle East, and Africa grew 8 percent (21 percent when adjusted for currency); Asia-Pacific grew 41 percent; Japan grew 52 percent; Latin America grew 28 percent; and Greater China grew 21 percent. Third quarter gross margin, as a percentage of revenue, was 23.9 percent, an increase of 0.7 percentage points year-over-year. Operating expense totaled $1.9 billion for the third quarter, a reduction of $132 million, or 7 percent from the third quarter 1999. ``These results tell a powerful story about how solid execution across the company coupled with innovative technology has resulted in accelerating financial and market performance. We clearly are differentiating ourselves through product development,'' Capellas continued. Business Outlook ``Looking forward, we expect continued strong revenue growth,'' Capellas said. ``We are confident that we can achieve 18 percent revenue growth and strong earnings per share improvement in the fourth quarter. ``In 2001, we see earnings growth in excess of 40 percent, consistent with consensus estimates,'' he concluded.