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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: T.R. who wrote (120187)	4/22/1999 8:02:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

'If you're looking for a CEO,talk to Michael Dell'-Angry CPQ shareholder. T.R: Man these guys (Compaq shareholders) are pissed,I don't blame'em. =============================== ''You're looking for a CEO, talk to (Michael) Dell. If you can't beat him, join him,'' the shareholder said to applause and laughter from the rest... ========================== Compaq Promises Better Future For Shareholders By Jeff Franks HOUSTON (Reuters) - Compaq Computer Corp. (NYSE:CPQ - news) Chairman Ben Rosen promised a better future for the troubled computer giant, but gave few hints about how it would be achieved at a sometimes rancorous shareholders' meeting Thursday. Rosen said the world's largest personal computer manufacturer had become too ''bureaucratic'' under Eckhard Pfeiffer, the chief executive who was forced to resign Sunday after announcing that first-quarter earnings would be far below expectations. ''We have a sound company and a sound strategy,'' Rosen told a packed annual meeting at Compaq's Houston headquarters. ''But it's also clear we have not executed the way we should have.'' ''Our goal is to return to our traditional levels of profitability and growth,'' Rosen said. His remarks did not prevent a wave of angry questions from shareholders who have seen their stock lose more than half its value in recent weeks. They questioned recent stock sales by Compaq directors and complained that they could not get anyone at the company to listen to them. ''Try getting a human being on the phone at Compaq,'' one shareholder fumed. Another suggested that the management committee look just down the road in Austin, Texas for its replacement for Pfeiffer. ''You're looking for a CEO, talk to (Michael) Dell. If you can't beat him, join him,'' the shareholder said to applause and laughter from the rest. Dell is the founder and chief executive of Dell Computer Corp (Nasdaq:DELL - news) ., Compaq's highly successful arch-rival. Compaq said Wednesday it earned $281 million, or 16 cents a share, on revenues of $7.8 billion in the quarter ending March 31. Analysts had predicted earnings would be twice that before a company warning earlier this month. Rosen said new management would stress ''speed and simplicity'' in the future so Compaq could keep pace with competitors. Rosen heads a three-member management team that is simultaneously running Compaq and searching for a new chief executive to replace Pfeiffer. He said it would be ''several months'' before the replacement was selected. While specifics about the future were few, Rosen indicated that Compaq wants to build its service business, which had a 32 percent profit margin in the first quarter, and push ahead with a Pfeiffer-led plan to become the dominant Internet company. He said the Alta Vista search engine bought as part of last year's $8.4 billion acquisition of Digital Equipment Corp. would be spun off later this year in a public offering. The offering would not be made until Alta Vista better assimilates Shopping.Com, an Internet shopping service purchased last year. ''We won't get enough value for the company if we do the offering now,'' Rosen told shareholders. Compaq sells its machines both through resellers and directly to the consumer. While many analysts believe this multi-faceted approach puts Compaq at a disadvantage to direct sellers like Dell Computer Corp. and Gateway, Rosen appeared happy with the current strategy. ''Complexity for one is choice to others,'' he said. ''One size doesn't fit all....We believe a customer should be able to buy a Compaq computer any way they want to.'' Rosen said Compaq currently has sales of about $2 million a day on the Internet to small and medium-sized businesses. Internet sales of the consumer Presario computer are also strong, he said. The company also said its ''store-within-a-store'' in Tandy Corp (NYSE:TAN - news)'s Radio Shack outlets had been successful, generating sales 50 percent above expectations since opening last year. Compaq stock edged down 56 cents to $23.69 in composite New York Stock Exchange trading.