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 (89338)	1/30/2001 7:49:39 AM
From: hlpinout	Read Replies (1) \| Respond to of 97611

Hmmmm, remember the deal with Disney? -- 1/29/01 - Former Disney Executive Joins Compaq Computer's Board of Directors Jan 27, 2001 (Houston Chronicle - Knight Ridder/Tribune Business News via COMTEX) -- A former Walt Disney Co. executive has joined the board of directors at Compaq Computer, filling one of several vacant posts on the computer maker's 12-person board. Sanford Litvack, 64, a former vice chairman at Disney left that position at the end of 2000. He still has a part-time role with Disney focusing on legal and governmental affairs, corporate alliances and sports operations. He continues to represent Disney on the supervisory board of Euro Disney S.C.A. Litvack joined Disney in early 1991 as senior vice president and general counsel, later becoming vice chairman of the board. He played a key role in the Disney acquisition of Capital Cities/ABC, which has become a large part of the company's growth. He also served as assistant attorney general in charge of the Antitrust Division of the Department of Justice during the administration of President Jimmy Carter. By Tom Fowler To see more of the Houston Chronicle, or to subscribe to the newspaper, go to chron.com

To: hlpinout who wrote (89338)	1/30/2001 7:53:33 AM
From: hlpinout	Read Replies (4) \| Respond to of 97611

Slowing PC sales spur diverse strategies By Ken Popovich, eWEEK Dell to pursue market share, price cuts; Compaq takes profits-over-sales route, shunning price war The PC industry's top two players are taking markedly different tacks in addressing slumping sales. Dell Computer Corp., in announcing its earnings, last week said it will continue to aggressively slash prices, sacrificing profit margins in pursuit of greater market share. Compaq Computer Corp., the world's top PC vendor, afterward said it would not compete in a price war, preferring profits over sales. While a price war may have little impact on larger enterprises, Dell's strategy could attract small to midsize businesses—which are more influenced by price—as well as consumers. But for smaller PC makers struggling in the harsh economic climate, a price war could drive them out of business. Some degree of consolidation will occur this year, said Kevin Knox, an analyst with Gartner Group Inc., in Stamford, Conn. While declining to speculate on which companies will drop out of the market, he said several vendors are obviously hurting, including eMachines Inc., NEC Corp. and Acer Inc. "Those companies, as well as other vendors, got hit extremely hard by the slowdown in the fourth quarter," Knox said. "I think those are the types of companies that need to rethink their PC strategies." Financial figures released last week underscored the differences in Compaq's and Dell's strategies. Compaq reported that its overall gross profit margin increased 1.5 percent, to 23.7 percent—boosted by strong sales of higher-end servers. Dell, the No. 1 direct-order PC maker, disclosed that its profit level fell 3 percent, to what one analyst said was about 18 percent. Another major PC maker that has joined Dell, of Round Rock, Texas, in slashing prices is San Diego-based Gateway Inc. The second-largest direct-order PC company pledged to "take the lead" in cost cutting earlier this month after it reported losing $94 million in the fourth quarter. But other leading PC makers, such as Houston-based Compaq; Hewlett-Packard Co., of Palo Alto, Calif.; and IBM, of Armonk, N.Y., are expected to lag in trimming prices. Those companies garner most of their revenues from non-PC sales, such as high-end servers, storage devices and services. Falling prices alone won't lure larger customers, said one IT manager. "Sometimes there is more to be gained by spending a few extra dollars upfront to maintain the standard," said Marshall Fernholz, procurement manager for the American Medical Association, in Chicago. "Once you start using different PC makers, the support costs rapidly transcend the hardware savings."