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

To: rupert1 who wrote (61157)	5/12/1999 8:08:00 PM
From: rudedog	Read Replies (1) \| Respond to of 97611

Victor - RE: Services grew from next to nothing to $1.6 billion in a year The business was supposedly more than $6B under DEC, prior to the acquisition, or something like $1.5B per quarter. Doing a year over year doesn't work because CPQ had only Tandem's service revenue in 1Q98. I think even the 10% growth claimed by Rando's team was an accounting gain which used the accounting differences between the pre-merger entities and current accounting to generate the growth. It would take a lot of digging to get to the real gains but I suspect they are lackluster. I think I remember EP mentioning 20% annual growth as a target for services back when the DEC merger was announced. Maybe that's the real reason behind Rando's exit.