Compaq Reports Record Third Quarter - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Compaq Reports Record Third Quarter

Compaq appears to be more than a one-quarter wonder. The PC, server, and storage system maker followed up a strong second quarter with an even more impressive third quarter that saw the company hit a new high for 90-day revenue.

For the quarter ended Sept. 30 and excluding investment gains, the company reported net income of $525 million, or 30 cents per share, compared with net income of $140 million, or 8 cents per share, in the same period a year ago. The consensus per-share earnings estimate among analysts surveyed by First Call was 29 cents.

The company's third-quarter revenue was $11.2 billion, an increase of 22% over last year. Compaq officials attributed the robust financial performance to a revitalized product mix and an enhanced direct-sales capability. The company expects earnings growth in excess of 40% in 2001. Analysts predict sales for Compaq's edgy new iPaq PC will hit $1 billion this year.

The company's strongest performing segment was its Intel-based server group, which posted a 41% year-over-year revenue gain to $1.6 billion. Technology Business Research analyst Lindy Lesperance says Compaq's strong presence in large enterprise environments is behind those numbers. "They still rule the data center," she says. Unix server revenue was up 5%.

Meanwhile, the turnaround of the company's commercial PC business continues. The group posted a 28% gain in revenue to $3.5 billion and an operating profit of $133 million. The unit lost $169 million in the same period last year.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Slideshows
IT Careers: 10 Industries with Job Openings Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/27/2020
Commentary
How 5G Rollout May Benefit Businesses More than Consumers
Joao-Pierre S. Ruth, Senior Writer,  5/21/2020
News
IT Leadership in Education: Getting Online School Right
Jessica Davis, Senior Editor, Enterprise Apps,  5/20/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll