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

To: jim kelley who wrote (44800)	1/23/1999 1:02:00 PM
From: trouthead	Read Replies (1) \| Respond to of 97611

"The way to my heart is through my mind." Small entry way. <g> jb

To: jim kelley who wrote (44800)	1/23/1999 1:09:00 PM
From: BILL CHOW	Read Replies (1) \| Respond to of 97611

Jim: CPQ started their reduction of headcount and facilities in Q3 the benefits are being realized in Q4. Q3 had a bloated head count and the switching of internal manufacturing to out sourcing had not taken effect. The expense of the down size had already been accounted for in Q2. I think there may be $350M to $400M going to the bottom line. There are also many other activities that we can't see. Things such as increase in service revenues that are lot more profitable and increase in Tandem sales which is also more profitable. Although I don't get to see any of the operating details, the guesses are this will be a very good quarter. I have been accumulating. Cheers