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 : Sequent -- Ignore unavailable to you. Want to Upgrade?

To: van wang who wrote (778)	1/21/1998 2:58:00 PM
From: van wang	Respond to of 1229

conference call Jan 29...10AM EST/7 AM PST...212 896 6071 replay...800 633 8284...ref 3595704 Subject: (UPDATE) Compaq's 4th-Quarter Earnings Rose 37% On Strong Sales Of Servers Date: Wed, 21 Jan 1998 09:25:22 -0800 (PST) From: staff@quote.com To: quotecom-users@quote.com ============================================================ Need another way to lower your tax bill? Confused with the new Roth IRA? Visit the NEW Scudder IRA Center. funds.scudder.com ============================================================ News Alert from Dow Jones Online News via Quote.com Topic: (NYSE:CPQ) Compaq Computer Corp, Quote.com News Item #5136760 Headline: (UPDATE) Compaq's 4th-Quarter Earnings Rose 37% On Strong Sales Of Servers ====================================================================== NEW YORK -(Dow Jones)- Compaq Computer Corp., buoyed by strong demand for its servers, Wednesday reported a 37% jump in fourth-quarter earnings on a 23% improvement in sales, matching Wall Street estimates. The nation's top personal computer maker (CPQ) also said its expects a strong 1998 despite weakness in Asia. For the fourth quarter, Compaq posted net income of $667 million, or 84 cents a diluted share, compared with $487 million, or 63 cents a diluted share, in the year-ago period. The latest quarter's per-share results were a penny better than the estimate provided by analysts surveyed by First Call. Sales soared to $7.32 billion from $5.97 billion. The Houston-based company said its enterprise computing business - which includes servers, workstations, clustering technology and primary and secondary storage products - accounted for 37% of its business in the fourth quarter. Compaq said its volume grew more than 2 1/2 times the industry's rate in the fourth quarter and that its gross margin was 27.6%. The company also said its focus on asset management lifted its cash balance 66% from the previous year to $6.8 billion and increased its return on invested capital to 90% for the fourth quarter from 49%. For the full year, Compaq posted net income of $1.86 billion, or $2.37 a share, on sales of $24.58 billion. A year earlier, the company earned $1.32 billion, or $1.74 a share, on sales of $20.01 billion. The results for 1997 included a charge of $208 million, or 27 cents a share, related to its acquisition of Microcom during the second quarter, and a charge of $44 million, or six cents a share, from costs associated with the Tandem merger. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.