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

To: rudedog who wrote (29259)	7/15/1998 7:48:00 PM
From: Roy F	Read Replies (1) \| Respond to of 97611

Compaq's Worldwide Unit Sales Out Increased 36 Percent in Q2; Compaq Leads Industry Shift to Sales OutMeasurements July 15, 1998 07:33 PM HOUSTON--(BUSINESS WIRE)--July 15, 1998-- Compaq Computer Corporation CPQ today announced significant reductions in channel inventories, achieving lower inventory levels than its stated goals. This was achieved largely by focusing the company's sales and marketing efforts on sales out of its commercial distribution channel. For the quarter, the company increased its unit sales out by 36 percent worldwide. The company's regional business units in North America and Europe, Middle East and Africa (EMEA) each realized significant increases over the same quarter a year ago. All enterprise computing products, commercial PC lines, and consumer PCs had strong growth in the second quarter (see related release). Early this year, the company made a strategic shift in its model, according to Enrico Pesatori, Senior Vice President, Compaq Computer Corp., focusing on sales out activities, from marketing programs to sales force compensation to market share measurements. "Sales out metrics more accurately reflect our business strategies and actual sales to end customers in the market," Pesatori said. According to Pesatori, North America sales out numbers increased 39 percent and EMEA 46 percent, offsetting slower increases in China at 11 percent, Latin America at 9 percent, Japan at 3 percent and Asia Pacific's decline of 15 percent. Also, Pesatori added that enterprise products realized a sales out increase of 58 percent and commercial desktops 35 percent on a worldwide basis. "We're very pleased with the sales out results in the second quarter as we continue to evolve our business model," Pesatori added. "These results reflect the momentum we've gained with customer-focused, build-to-order manufacturing and competitive pricing strategies. This shift to a sales out orientation provides the best measurement of Compaq's success in the market." Company Background Founded in 1982, Compaq Computer Corporation is a Fortune Global 200 company. Compaq is the second largest computer company in the world and the largest global supplier of personal computers. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, networking and communication products, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices. Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products are available at compaq.com or by calling 1-800-OK-COMPAQ. Product information and reseller locations are available by calling 1-800-345-1518. Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.