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: PCSS who wrote (29132)	7/15/1998 9:34:00 AM
From: CENTrader	Respond to of 97611

The MSNBC release included some forward looking statements. LOOKING GOOD! ÿ"During the quarter, we achieved two major milestones: the completion of the Digital acquisition on June 11 and the achievement of worldwide commercial channel inventory goals," said Eckhard Pfeiffer, Compaq's President and Chief Executive Officer. "We are now moving quickly with the integration of Digital," Pfeiffer added. ÿ ÿ ÿ ÿ"With the decisive steps taken to position our products competitively in commercial channels worldwide and reset goals for the newly combined companies, we are now moving aggressively to achieve targeted levels of performance and growth in Return On Invested Capital," said Earl Mason, Compaq's Senior Vice President and Chief Financial Officer. "Early integration progress can be seen on the Company's new balance sheet ending the second quarter with $4.6 billion of cash with very little debt." ÿ ÿ ÿ ÿCompaq recorded several charges during the second quarter in connection with the Digital acquisition and closing of certain Compaq facilities. These charges, net of related taxes, included $3.2 billion for the write-off of purchased in-process technology, $291 million for restructuring charges related to Compaq employee separations and elimination of certain Compaq facilities, and $139 million for other operating adjustments. These operating adjustments were primarily for incremental pricing actions on certain Digital products to integrate them with Compaq products in the marketplace and the higher cost of sales as a result of fair value adjustments for acquired Digital products sold since the acquisition date. ÿ ÿ ÿ ÿThe Digital acquisition was accounted for as a purchase transaction. A restructuring reserve of $1.5 billion related to Digital employee separations, elimination of duplicate facilities, and employee relocations, was included as part of the purchase price allocation upon completion of the acquisition on June 11, 1998. ÿ ÿ ÿ ÿLooking forward, Mason said "our emphasis is on future growth and realizing significant synergies. As previously discussed, the third quarter will largely be transitional, focused on both the integration of products and services, and the achievement of revenue and cost synergies. We continue to believe earnings for the combined companies will be accretive as early as the fourth quarter." ÿ ÿ ÿ ÿ