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

To: Lynn who wrote (56290)	4/9/1999 5:04:00 PM
From: Jimbo Cobb	Read Replies (2) \| Respond to of 97611

Glad I didn't average down on CPQ at $30...I'll wait for $25 now... Jimbo.

To: Lynn who wrote (56290)	4/9/1999 5:05:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 97611

(UPDATE) Compaq Says 1st-Quarter Earnings Will Fall Short Of Estimates Dow Jones Online News, Friday, April 09, 1999 at 16:53 NEW YORK -(Dow Jones)- Compaq Computer Corp., the world's top supplier of personal computers, late Friday warned first-quarter earnings will fall short of analysts' estimates, citing a slowdown in demand for business PCs. Compaq expects to post earnings of 15 cents a share on revenue of $9.4 billion. The mean estimate of analysts surveyed by First Call was for net income of around 31 cents per share. The Houston-based company had previously warned of slower-than-expected PC demand, particularly in North America and Europe. On Friday, it also cited competitive pricing in business PCs. The first quarter is usually slow for computer makers because spending by consumers shrinks after Christmas, and corporate orders slow after the usually strong fourth quarter. But an expected spending bonanza this year to fix the year 2000 bug didn't materialize. Still, the big computer makers were expected yo report mostly improved first-quarter results compared with last year, when turmoil in Asia and a retail-inventory glut of personal computers hurt sales and margins. Industrywide, corporate PC demand grew about 10% in units and the consumer PC business continued to rise at about 15% to 20% in units. But prices dropped at about a 25% annual clip. Compaq's warning is startling because many analysts thought it benefited from its high-margin server computer business. James D. Poyner, an analyst with CIBC World Markets, had expected Compaq's first-quarter revenue to rise about 72% to $9.8 billion from the anemic year-ago period. He was looking for net income of $566 million, or 33 cents a share, compared with last year's $16 million, or one cent a share. Compaq, which expects to report results on April 21, said market conditions will continue to be competitive but that it intends "to expand our business and grow market share profitably in 1999." The company plans to announce a strategy for the business-computer market next week. Compaq said it will continue its aggressive drive of reduction of cost and operating expenses in the face of a very competitive market. Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved.