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

To: Elwood P. Dowd who wrote (92174)	7/14/2001 5:26:43 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

This tidbit was just posted at the Yahoo news site: Compaq said to have services goal Barron's: Computer-maker looks to emulate IBM By Tim Haran, CBS MarketWatch.com Last Update: 4:47 PM ET July 14, 2001 SAN FRANCISCO (CBS.MW) -- Compaq plans to take IBM's lead and compete aggressively for computer service contracts, including the high-paying consulting business, according to an article in Barron's on Saturday. Compaq (CPQ: news, msgs, alerts) Chief Executive Michael D. Capellas recently outlined plans to transform the computer company amid increased competition from top direct-sale PC vendor Dell (DELL: news, msgs, alerts) . In a June 25 memo sent to employees, Compaq "bared its plans to diversify beyond low-cost commodity markets and aim for IBM's business mix of hardware, software and consulting," Barron's wrote. Compaq, which has been locked in a computer pricing war with companies such as Dell, warned last week that it would meet analyst earnings targets but would fall short of revenue estimates for the second quarter. See full story. The Houston-based company plans to eliminate 8,500 jobs by the end of the year while adding new service professionals to help expand Compaq's services business by 40 percent a year from its current level of 21 percent of revenues, Barron's reported. "Services are a huge competitive weapon," Compaq Vice President Peter Blackmore told Barron's. The company already has $500 million budgeted for acquisitions. Compaq shares rose 12 cents to close at $15.22 on Friday. Tim Haran is a San Francisco-based reporter