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

To: Night Writer who wrote (33764)	10/4/1998 12:42:00 PM
From: P2V	Read Replies (1) \| Respond to of 97611

Compaq Sees Profit From Digital This Year By Reuters Oct 2, 1998 (7:42 AM) URL: techweb.com FRANKFURT, Germany -- Compaq said Friday the integration of Digital Equipment was on track and its takeover of the company would begin to contribute to earnings by the end of 1998. "At the time of the acquisition, we said we were determined to make Digital accretive by the end of the year," said Enrico Pesatori, Compaq's senior vice president of marketing. "We are executing pretty much to plan," he said. "The December quarter is when we really should start to see the financial impact of the acquisition." As of Oct. 1, Pesatori said, Houston-based Compaq (company profile) had a unified North American sales force for products from Compaq, Digital, and Tandem, a mainframe maker the company acquired in 1997. It has also unified sales groups in some European countries, but the process was taking longer in Germany and France because of labor regulations in those countries. Compaq, the second-largest computer company in the world and the largest global supplier of PCs, said it plans to reduce Digital's work force in both countries, but French and German laws require it to negotiate layoff plans with unions and employee representatives. "In other countries, the integration of finance and accounting is already done. In Germany and France, it will take another six to nine months," he said. Compaq has said the Digital units in France and Germany are unprofitable and overstaffed. Digital Germany had an operating loss of 65 million marks ($39.85 million) last year as sales fell 19 percent, Compaq Germany CEO Gerrit Huy told Reuters last week. Compaq wants to cut 820 of 2,500 jobs at Digital Germany, she said. Pesatori declined to detail losses by Digital France or the layoffs planned there. Compaq has said it aimed to cut 17,000 job worldwide, with 4,000 to 5,000 job cuts coming in Europe. Including Maynard, Mass.-based Digital, it now has a payroll of about 82,000.