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

To: John Koligman who wrote (86846)	11/15/2000 12:12:20 PM
From: Tony Viola	Read Replies (2) \| Respond to of 97611

John, Elwood, CPQ should gradually get affected less with every PC forecast, up or down (most of them down lately), as the enterprise parts of the business gets recognized more as the big money maker. Unfortunately, for now, every analyst and his uncle thinks he can analyze the PC biz. They tend to leave the enterprise products alone more because the data is harder to get and they don't understand the products. JMO. Tony

To: John Koligman who wrote (86846)	11/15/2000 12:44:02 PM
From: Elwood P. Dowd	Respond to of 97611

Compaq CEO: North American Sales Growth Rate Down Updated 7:19 AM ET November 15, 2000 By Donna Fuscaldo Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Even though sales of personal computers in the seasonally strong fourth quarter are not as robust as a year ago, Compaq Computer Corp. (CPQ) Chief Executive Michael Cappellas said Wednesday that sales are tracking in line with its expectations. Sales of PCs in North America are not declining, said Cappellas during a conference call hosted by Bear Stearns analyst Andy Neff, but there is "certainly a slow down of the growth rate." Although it won't be a blowout fourth quarter like last year's fourth quarter, Compaq stills sees growth in line with expectations, he said. The executive also added that there is no change to fourth quarter guidance of 18% revenue growth. According to Cappellas consumers are now being more discretionary in their spending. "Its not spectacular," he said about consumer PC sales, "but it is not a disaster by any stretch of the imagination. " He added that about 40% of PC sales are going through the indirect sales channel. And even though consumer PC inventory is tracking a "little high" other competitors' retail inventory is higher, he said. As for sales in Europe, which have slowed in recent months and caused tech heavyweights like Intel Corp. (INTC) and Dell Computer Corp. (DELL) to lower their third quarter guidance, Cappellas said sales of some products such as Web servers, wireless devices and lighter, simpler to use, devices are "on fire" while others are starting to drag. "Europe is going through a shift and wireless is the dominant thing," he said. "Virtually every IT director is asking do I want to roll out WAP (devices) or PCs." And in Japan, where Cappellas said there is no question that consumer PCs are slowing, Compaq is gaining share on the high-end side and in its services business. In the storage space where Compaq competes against EMC Corp. (EMC) and Network Appliance Inc. (NTAP) Cappellas said the company plans to focus more on a dedicated sales force. The computer maker intends to put more storage specialists in the field as well as put together a more aggressive sales team, he said. The real opportunity for Compaq in the next 12 to 18 months, is services, said Cappellas. "You will see a lot of emphasis on using (services) as a growth engine," he noted. Separately Compaq issued a press release Wednesday in which the computer company announced the promotions of Peter Blackmore to executive vice president of sales and services, Michael Winkler to executive vice president, global and business unit and Mary McDowell to senior vice president and general manager of the industry standard server group. Blackmore had been senior vice president and general manager, Winkler was previously senior vice president and general manager and McDowell was vice president. During the conference call Cappellas commented that those promotions are because of a job well done and not a structural change at Compaq. -Donna Fuscaldo; Dow Jones Newswires; 201-938-5253 donna.fuscaldo@dowjones.com Merck/Outlook: CEO Reiterates Outlook At Conference Sunbeam/Lenders -2:Sunbeam Paper Trades 50c On The Dlr Christopher/Gore: Seeks To Consolidate Lawsuits Internet Capital, Andersen Consulting To Merge Electronic-Procurement Units Tricon Estimate -4: To Double Earnings Per Shr By 2005 UST Inc./Outlook-3: Tobacco Unit To Launch 4 Pdts In '01 Verizon Wireless Agrees to Buy Price Communications Wireless for $1.5 Billion Hersey Foods Confirms In Search For New CEO ICG Commerce/Andersen Consulting-4: Gets Client Base Adam.com In Content Licensing Pact With Merck Compaq CEO: Consumer Retail Sales Tracking In Line In 4th Quarter PXRE Grp Declares 6c Regular Qtrly Dividend ESPS Inc. Launches Online Stock Purchase Service Mark Tanz To Buy 3.3M Revenue Properties Shares For C$2.30/Share CORRECT:Guidant's Study, Not System, Is Called Inhibit Offshore Systems Names Johnston A Director, Boosts Board To 7 Business Services by Work.com Choose a service Printer-friendly format Send this story to a friend New! Help Add URL Advertise with us Jobs@Excite Press Releases Copyright © 2000 At Home Corporation. All rights reserved.