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: hlpinout who wrote (89167)	1/24/2001 6:56:30 AM
From: hlpinout	Respond to of 97611

1/23/01 - Enterprise Sales Help Compaq Beat Estimates Jan 23, 2001 (Tech Web - CMP via COMTEX) -- Compaq Computer Corp. reported that it exceeded lowered analyst expectations for the fourth quarter, as the company's enterprise business overcame a slumping U.S. economy. Compaq (stock:CPQ ) on Tuesday reported net income from operations of $515 million, or 30 cents per share, for the quarter ending Dec. 31. A year ago, the company reported income of $282 million, or 16 cents per share, for the same period. Twenty-two brokers polled by First Call/Thompson Financial expected Compaq to report earnings of 28 cents per share, at the bottom of the revised forecasts the company published Dec. 12. Compaq, Houston, said revenue grew 10 percent from the same period a year ago to $11.5 billion, slightly ahead of the company's revised forecasts. Due to general softness in the U.S. market, Compaq had predicted fourth-quarter revenue would be between $11.2 billion and $11.4 billion. For the first quarter of 2001, Compaq expects earnings to be about 21 cents per share on revenue of approximately $9.6 billion, the company said. Like other manufacturers, Compaq was bitten by slower demand for PCs during the fourth quarter. But by tying the company's enterprise servers, storage, and services together into a one-stop solution, Compaq came out ahead. Compaq also isolated itself from the U.S economy by recording more sales outside the country than within it. "If one thing stands out from the fourth-quarter results, it's the strength of our enterprise technology solutions," Michael Capellas, Compaq's chairman and chief executive officer, said in a conference call with analysts. Compaq's Enterprise Computing revenue, comprising servers and storage, grew 20 percent year-over-year to $4.1 billion with strength across its high-end product lines. Industry standard server revenue was up 24 percent to $1.6 billion; business-critical server revenue was up 17 percent to $944 million; and storage revenue was also up 17 percent to $1.6 billion, the company said. Compaq shipped 73 Tbytes of storage, an all-time high. The company's results excluded a $1.8 billion charge that Compaq previously reported due to a writedown of CMGI Inc. (stock:CMGI ) stock first acquired from AltaVista Co. in 1999. Had the writedown been included, Compaq would have lost 39 cents per share, or $672 million, compared with a profit of 19 cents, or $332 million, a year ago. For the 2000 year, Compaq reported net income of $1.7 billion, or 33 cents per share -- excluding charges -- on revenue of $42.4 billion. The acquisition of the CMGI stock had previously been a boon to Compaq's revenue. "One thing that's clear -- you don't need to be a CPA to understand it -- is what the accountants giveth, the accountants taketh away," Capellas said. Compaq's PC business grew 3 percent overall for the quarter and 20 percent for the year, with executives claiming the business was "profitable." Commercial PCs also fared well, with customers leaning towards higher-margin Presario notebooks. Since the company scaled back PC production during the quarter and sold about 40 percent of its computers directly to end customers, Compaq did not have to take back any inventory from its channel partners, Capellas said. Still, consumer PC operating income during the fourth quarter dipped to an operating loss of $6 million, compared with a profit of approximately $69 million a year ago. Revenue for the consumer PC business rose 4 percent to $2 billion. Commercial PC revenues, however, grew 11 percent to $3.5 billion, which included higher sales of notebook PCs and fewer desktop sales. Compaq's services business dipped 5 percent year-over-year to $1.8 billion. techweb.com

To: hlpinout who wrote (89167)	1/24/2001 6:59:20 AM
From: hlpinout	Respond to of 97611

HONG KONG LAUNCHES ELECTRONIC SERVICE DELIVERY Story Filed: Tuesday, January 23, 2001 9:01 PM EST HONG KONG, Jan 24, 2001 (AsiaPulse via COMTEX) -- The full launch of the Electronic Service Delivery (ESD) Scheme has marked a breakthrough in public service delivery in Hong Kong, Acting Chief Executive said here. The Scheme, a key initiative under the Government's "Digital 21" Information Technology Strategy, aims at developing Hong Kong into a leading digital city in the globally connected world and completely transforms the way in which public services are delivered. It will initially provide over 60 types of public services from more than 20 Government departments and public agencies through a single portal which is accessible 24 hours a day and seven days a week. All of this can be done online at one's own convenience, Mrs Chan, when officiating at the Grand Launching Ceremony of the ESD Scheme Friday. Mrs Chan noted that members of the public would no longer need to queue at counters in Government offices during office hours to renew a driving or vehicle licence, pay tax or apply for a business registration certificate, etc. "These services can be accessed through personal computers, or public computer facilities at community centres, post offices or public libraries; or at smartly-designed public kiosks installed in MTR or KCR stations, shopping malls, supermarkets, and Government premises." "From now onwards, waiting in line will be replaced by transacting online," she said. Over 70 public kiosks are already in operation, and the number will reach 100 in the next few months. Acknowledging concern about security in electronic transactions, Mrs Chan assured the public that transactions were secure and personal data would be well protected. The ESD Scheme has adopted state-of-the-art technologies in areas like electronic authentication, data encryption and electronic payment gateway. "In this particular aspect, Hong Kong is as advanced, if not more so, than any other city in the world today," she stressed. The ESD portal is one of the first web sites that integrates both public and private sector services in a citizen-centric approach. Deloitte Consulting recently cited the portal in the Asian Wall Street Journal as a good example of e-government, the successful implementation of which "could prove a precursor to an Asian era of integrated, boundary-less, customer-focused public service". Some ESD applications require the use of digital certificates to authenticate the identity of users. The public may apply for digital certificates from the Hongkong Post, which, starting from January 19, accepts online application through the Internet. Those who had registered with the Hongkong Post earlier this month would receive a free smart card embedded with Hongkong Post e-Cert, which can be used at public kiosks to access ESD services. Users accessing ESD services through the Internet from their own personal computers will have to download the necessary software, e.g. software for data encryption, etc., from the web site when using the service for the first time. A CD-ROM with the necessary software is distributed by the ESD operator to the public which could minimise the downloading time. Mrs Chan pledged that the Government would continue to enhance the public services available through ESD. "Within this year, we will roll out new services including booking of sports and leisure activities, sales of Government publications, registration to sit for public examinations, reservation of marriage dates and real-time traffic video," Mrs Chan said. She also paid tribute to ESD Services Limited, a joint venture between Hutchison Global Crossing and Compaq Computer, for developing and operating the system for the Government. "The implementation of the Scheme demonstrates an innovative partnership model between the Government and the private sector," she said. (C) 2001 Asia Pulse Pte Ltd

To: hlpinout who wrote (89167)	1/24/2001 7:01:19 AM
From: hlpinout	Read Replies (1) \| Respond to of 97611

Thiel Logistik Ends Dispute With Compaq, Will Boost Profit 1/24/01 1:41 AM Source:Bloomberg News Grevenmacher, Luxembourg, Jan. 24 (Bloomberg) -- Thiel Logistik AG, a Luxembourg-based maker of software for logistics and management, said it had reached a settlement with Compaq Computer GmbH. It did not specify the nature of the dispute. The settlement means Compaq's claim of 8.7 million deutsche marks ($4.2 million) on Ley GmbH, a subsidiary of Thiel, no longer exists. The reserves Thiel set aside for legal costs associated with the claim will be liquidated, boosting profit at the unit, the company said in a statement on Frankfurt's stock exchange. Thiel shares rose as much as 4.95 euros, or 3.5 percent, to 148.45 euros.

To: hlpinout who wrote (89167)	1/24/2001 8:26:04 AM
From: marquis103	Read Replies (1) \| Respond to of 97611

This story in particular highlights how thickheaded some analysts continue to be. They make the Compaq uphill fight even harder. "Bill Shope with ABN Amro notes that Dell's manufacturing and distribution model puts it in a better position than Compaq to grow more quickly as prices and demand remain low. "In this scenario, we believe that Compaq's margins will come under pressure and should continue to be hurt until PC demand firms up and pricing eases," Shope wrote in a report. " Well, DUH, how many more times do you have to be told that Compaq is so much more than a PC company. By the way the commercial PC's are doing just fine, thank you, and even Capellas acknowledged that the consumer PC was necessary to round out the overall business. Does anyone still doubt he'll return that part to profitability soon? "Ashok Kumar with U.S. Bancorp Piper Jaffray says Compaq has lost momentum to Dell in the overall market. "Its only savior now is the AlphaServer line," he said, referring to Compaq's most powerful line of computers. " This statement is just too ignorant to consider when there are just so many things he's overlooking. I say Good For Capellas, he's showing Wall Street that he's got the goods, and his company is not only delivering, but fleet enough to adjust to changing market conditions. Russ