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

To: Kenya AA who wrote (55111)	3/29/1999 4:04:00 PM
From: Jimbo Cobb	Read Replies (1) \| Respond to of 97611

CMPL GETTING READY TO KICK CPQ'S BUTT !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! jajajajajajajajaja Jimbo.

To: Kenya AA who wrote (55111)	3/29/1999 4:16:00 PM
From: Night Writer	Respond to of 97611

(REUTERS) Compaq expands small-business PC sales to retail Compaq expands small-business PC sales to retail (recasts paras 1-4, new from para 5, including executive and analyst comments, stock price, adds byline, pvs HOUSTON) By Eric Auchard NEW YORK, March 29 (Reuters) - Compaq Computer Corp. <CPQ.N>, the world's largest personal computer maker, on Monday unveiled new PC products for small and medium-size businesses and expanded plans for distribution through major U.S. retailers and wholesalers. The company said it will distribute its Prosignia small- and medium business PC line through 600 U.S. retail outlets, including CompUSA Inc. <CPU.N>, Office Depot Inc. <ODP.N>, OfficeMax Inc. <OMX.N> and Staples Inc. <SPLS.O> stores. The Houston-based company also announced programs to reduce, and perhaps eliminate, the threat of inventory backups between wholesalers and hundreds of Prosignia PC resellers, who in turn sell Compaq PCs to small-business customers. It said Ingram Micro Inc. <IM.N> and Tech Data Corp. <TECD.O>, the world's two largest computer wholesale distributors, had located computer assembly lines alongside Compaq manufacturing plants in order to speed shipments of new business PCs to the Compaq sales network. "We are covering 100 percent of potential customers -- both direct and indirect," Enrico Pesatori, Compaq vice president of sales and marketing, said of the move to expand the distribution reach of its Prosignia line to include retailers. Compaq said the retail effort reinforced its position as the only major PC maker to sell low-priced business PCs through all major sales channels -- resellers, wholesalers, direct marketers, retailers and directly over the phone and Internet. But analysts said the actions appeared at least partially inspired by the continued turmoil between Compaq's direct and indirect sales approaches as it seeks to compete with rivals Dell Computer Corp. <DELL.O> and Gateway Inc. <GTW.N> Compaq, which has recently stepped up direct PC sales via the phone and Internet to business customers, has been looking to find ways to mollify its traditional wholesale and resale distributors that are by-passed when it sells PCs direct. Lou Mazzucchelli of brokerage Gerard Klauer Mattison said the widening array of Compaq distribution avenues could backfire by causing customer confusion on where to find the lowest price for Compaq PCs, provoking unwanted comparison shopping. In addition, Compaq introduced Monday new low-cost Prosignia-brand server and notebook PC models for small- and medium-size businesses, expanding on the line-up of desktop, server and notebook PCs it originally introduced in November. The new Prosignia NeoServer 720 and 740 models, priced at $1,399 and $1,699, respectively, are designed to make it easy for small- and medium-size businesses to set up office networks of up to 25 computers or to manage online commerce systems. The company introduced a new Prosignia Notebook 150 starting at $1,799 when purchased direct, with leases starting at $61 per month. The new model expands Compaq's existing line-up of Prosignia notebooks running Intel computer chips to include the first machine running a top-of-the-line microprocessor from Intel Corp. <INTC.O> rival Advanced Micro Devices Inc. <AMD.N> Compaq officials said the company's streamlined ties to wholesale distributors would usher in a new era of "inventory-less distribution" that could prevent the build-ups of unsold PCs that have plagued Compaq in the past. Pesatori said Compaq currently was selling about $2 million a day worth of Prosignia products via phone and Internet sales. The figure is in line with what the company told Wall Street to expect when Prosignia was introduced in November, he said. He said 70 percent of Prosignia sales represent new business with customers not previously served by Compaq, and almost half of Prosignia customers had switched from direct PC suppliers and Compaq rivals Dell and Gateway. Compaq officials declined to offer more specifics on Prosignia sales ahead of the company's first quarter financial report, due out in April. By mid-afternoon Monday, Compaq stock rose 69 cents to $31.87 in composite U.S. stock market trading. ((-- Eric Auchard, New York newsdesk, 212-859-1840)) REUTERS