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

To: Elwood P. Dowd who wrote (59003)	4/20/1999 7:31:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

Rosen's Teleconference With Employees' (cortesy of she_x) rosen's teleconference to employees she_xlr8s (44/F/TX) Apr 20 1999 2:24PM EDT > -----Original Message----- > From: News CPQ > Sent: Tuesday, April 20, 1999 7:12 AM > Subject: Office of the Chief Executive's Monday teleconference > > Chairman Benjamin M. Rosen and directors and vice chairmen Frank P. Doyle > and Robert Ted Enloe, III--the three members of the Office of the Chief > Executive--led a worldwide teleconference Monday, in which they discussed > Compaq's future direction. The transcript of that session is published on > News.CPQ, a daily news update for Compaq employees. See URL > inline.compaq.com > > In the teleconference, the members of the Office of the Chief Executive > made several significant points: > > > * Our strategy is fundamentally sound, and our potential for growth is > stronger than ever. > * We need to accelerate our decision-making. We need to act with > speed, simplicity and self-confidence. > * We must have the organizational flexibility necessary to move at > Internet speed. Size does not mean "slow." > * The Office of the Chief Executive will direct changes that will make > the company more competitive, simultaneous to moving ahead quickly to > select the right Chief Executive Officer to lead the next era of Compaq's > growth and development. > * We must re-energize the company, which has not achieved its full > potential in the past two years. We have re-energized this company > before, and working together, we will do it again. > * We will have a more relaxed dress code. Business casual clothing > will be considered appropriate. > * Compaq has the best employees anywhere in the industry -- we have > the people and the competency to make the changes that will reinforce our > industry leadership. > * Former CEO Eckhard Pfeiffer oversaw a period of stunning growth in > Compaq's history. All those who benefited from that growth owe him a debt > of gratitude.

To: Elwood P. Dowd who wrote (59003)	4/20/1999 7:39:00 PM
From: rupert1	Respond to of 97611

Verbatim 5 Part 5 texas_zippy Apr 20 1999 3:58PM EDT Mr. Rosen: Well, this is the CEO.... It's a three-headed CEO right now. Ms. Auwers: My point was in some cases, those are things that probably don't really need approval, but until we get told that we'll come forward. Mr. Rosen: Well, we plan to review all of those issues. Question. Rick DeScazio, of Washington, D.C.: What are the top three priorities or challenges the company now faces? Mr. Rosen: I'm not sure we can prioritize them now. We haven't been around long enough. We think there are a lot of challenges. We don't want to get in a position of having ten first-priorities. So these are things we're going to look at this week. And we can't answer them now, but certainly some of the issues that Ted referred to – such as speeding up decision-making – we think is highly prioritized, and we're going to attack that. But we can't itemize them yet. Question. John Nicholson, Marlboro, Massachusetts: There are four constituencies that matter in this: shareholders, colleagues, customers and partners. And you mentioned you'd communicate to financial analysts, which is a way of reaching shareholders. You're communicating with us now. My question is what are you going to say to customers and partners, when are you going to say it, and how can we help you do it? Mr. Rosen: That's a good question. And we're depending on all of you to help pass this message throughout your organization and also to the outside constituencies through our partners and to our customers. And we will be talking to some of the major customers together with you. And we started this yesterday, and we're continuing on with customers and with partners. Mr. Enloe: Well, I think it's very important. Starting yesterday, a lot of people were contacted. I know Ed Straw had actually reached or left at least a voice mail for 80 percent of our suppliers. And even if you didn't reach them, they'll come home and they know you've tried to reach them, which is very important. Clearly our competitors are going to try to take advantage of this. And clearly we've tried to say in our statements, both to the analytical community and in the press release, that our fundamental strategy is sound, which is hopefully messaging them that they're not going to be left without support in a general area. But you all know what's happening out there in the marketplace. So I think the extent that we come back very strong, we're going to do better.... We really need to be strong and we need your help in messaging that to the customers, because let me tell you they're going to be out there in force, saying that this thing is broken, there are going to be changes in strategies, and we've got to counteract that. Mr. Rosen: There's no reason this message from you should not be a positive, enthusiastic, energetic message. I think that's the case. Mr. Doyle: I think, you know, if we have succeeded in communicating to all of you on what we're doing and why we're doing it, then you'll feel absolutely not only free to but encouraged to contact everyone who is important to you in the marketplace, partners....

To: Elwood P. Dowd who wrote (59003)	4/20/1999 7:40:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

Verbatim 6 art 6 (finally) texas_zippy Apr 20 1999 3:59PM EDT Question. Kevin Dunwoody, from New York City: Gentlemen, at Innovate I had a couple of customers come up to me with inquiries about more detailed information about what happened in the quarter in terms of reduction in profits per share. Could you give us any insight into some of the financial rationale for what happened in Q1? Mr. Rosen: Beyond what's been reported so far, we – the three of us – don't have a lot of additional information yet. Part of the reason that was ascribed to the shortfall – most of the reason that we publicly ascribed to it – was the softness in the computer industry. This explanation wasn't received well by the financial community. And the allegations were made that there perhaps were internal reasons as well as external reasons for the shortfalls. We're looking at this now. And we're having an analysts' meeting by telephone Wednesday morning to go over the final results for the quarter. But we just don't have enough information now. Question. Gary Sobolewski, Dallas, Texas: Last week at Innovate, we unveiled a NonStop® eBusiness strategy. And there were a number of things that were going to be followed up on with that. Any impact that we would want to share with our customers and partners on this weekend's announcements? Mr. Rosen: No change in the strategy. I think you should communicate that. Moderator: I show no further questions at this time. Mr. Rosen: In that case, on behalf of the three of us, we'd like to thank you for all you've done and that all you're going to do. And now, let's all roll up our sleeves and join me and Ted and Frank and let's go to work. Thank you. (Applause.)