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To: The Duke of URL© who wrote (93741)	11/14/2001 9:25:16 AM
From: Elwood P. Dowd	Respond to of 97611

Hewlett-Packard's Fiorina says Compaq merger will occur NEW YORK, Nov 14 (Reuters) - Hewlett-Packard Co. (NYSE:HWP - news) chief executive Carly Fiorina said on Wednesday that it's far too early to say its planned nearly $22 billion merger with Compaq Computer Corp. (NYSE:CPQ - news) won't go through. ADVERTISEMENT ``I think it's important to remember that the approval of this merger is a process that we are not yet even half-way through,'' Fiorina said during a conference call. ``We remain convinced this merger will occur.'' Last week, members of both the Hewlett and Packard families said that they planned to vote against the merger, which was announced on Sept. 4. That touched off speculation the deal won't get the needed shareholder approval. But Fiorina noted the company still has to file its proxy and that it needs regulatory approval before a vote will occur. In addition, she said that Hewlett-Packard executives have been meeting with and will continue to meet with the David and Lucile Packard Foundation, which owns more than 10 percent of Hewlett-Packard. The foundation probably won't decide how to vote until December or January, she said. The company also said that during the third quarter, revenues in the consumer sector fell 20 percent from the year-ago period and that revenues in the enterprise sector declined by 21 percent from the year-earlier period.

To: The Duke of URL© who wrote (93741)	11/14/2001 9:26:52 AM
From: Elwood P. Dowd	Respond to of 97611

Hewlett-Packard profit falls but beats forecasts (UPDATE: Adds details, updates stock price) PALO ALTO, Calif., Nov 14 (Reuters) - Computer and printer maker Hewlett-Packard Co. (NYSE:HWP - news) on Wednesday reported sharply lower fiscal fourth-quarter profits as sales contracted in a tough economy, but the results soundly beat Wall Street forecasts as HP cut costs faster than expected. ADVERTISEMENT Hewlett-Packard stood behind its planned $22 billion acquisition of Compaq Computer Corp. (NYSE:CPQ - news), which has run into opposition from members of the founding Hewlett and Packard families as well as outside investors. HP said it had cut operating costs 4 percent from the previous quarter and its well-known printing division had done particularly well, but it warned that tough times could continue in the wider economy, saying it was not counting on an economic recovery in 2002. Hewlett-Packard earned $361 million, or 19 cents per share, from continuing operations, down from $841 million, or 41 cents per share, a year earlier. Sales fell to $10.9 billion in the quarter ended Oct. 31, from $13.3 billion a year ago. Wall Street had expected earnings of 8 cents per share, with estimates ranging from 7 cents to 14 cents, and sales of $9.9 billion, according to research firm Thomson Financial/First Call. Hewlett-Packard shares jumped in early Instinet trading to $22.25 from a Tuesday close at $20.23 on the New York Stock Exchange. Net profit, including charges and one-time items, fell to $97 million, or 5 cents per share, from $922 million, or 45 cents per share, in the year-earlier quarter. The fourth-quarter results included a $282 million pre-tax restructuring charge. ``Results were driven by excellent execution in imaging and printing and good performance in services. While overall computing systems results remain weak, we saw improvement in certain segments, including storage and PCs,'' Chairman and Chief Executive Carly Fiorina said in a statement. ``We reduced our cost structure, improved our operational effectiveness and managed inventory aggressively,'' she said. The computer division had a negative 4.7 percent operating margin, widening from 3.8 percent the previous quarter and 4.0 percent a year earlier, although HP said its Unix computer division remained profitable. Sales of computers fell 31 percent year on year. The services division -- a key part of the planned merger with Compaq -- saw consulting hit by the weak economy as outsourcing revenue rose. Hewlett-Packard said it still expected to quickly profit from the acquisition of Compaq. Compaq failed Wall Street expectations in its third quarter, reporting on Oct. 23 a loss due to weak technology spending and problems related to the Sept. 11 attacks, in part. Hewlett-Packard said it expected fiscal first-quarter revenues to fall slightly from the fourth quarter. First-quarter margins and expenses would be flat compared with the fourth quarter, it said. The company said it had made about 4,000 of 6,000 planned job cuts and would make the remaining cuts by the end of its first fiscal half.

To: The Duke of URL© who wrote (93741)	11/14/2001 9:28:11 AM
From: Elwood P. Dowd	Respond to of 97611

Hewlett-Packard Gains After Topping Fourth-Quarter Forecasts By TSC Staff 11/14/2001 08:17 AM EST Hewlett-Packard's (HWP:NYSE - news - commentary - research - analysis) shares were rocketing higher in the premarket session after the company blew away fourth-quarter earnings estimates. Shares of the Palo Alto, Calif., computer and printer maker were recently up $1.92, or 9.5%, at $22.15. The company said fiscal fourth-quarter earnings from continuing operations were $361 million, or 19 cents a share, down sharply from $841 million, or 41 cents a share, last year, but well above the Wall Street consensus forecast of 8 cents. The company's bottom-line earnings were $97 million, or 5 cents a share, after charges. HP cited strong execution in its printer and imaging businesses for the better-than-expected results. Fourth-quarter sales fell to $10.9 billion from $13.3 billion last year, and the company warned first-quarter revenues would be slightly below the fourth's. HP also reiterated its plans to acquire Compaq (CPQ:NYSE - news - commentary - research - analysis).