Apple revenue up 37 percent in Q1

Compaq Computer Corp. Wednesday posted financial results for the fourth quarter of 2001 that beat analysts' expectations and its own earlier revenue estimates, though revenue still lagged behind its performance of a year earlier.

The company reported net income of US$92 million, or $0.05 per share, on revenue of $8.5 billion for the quarter, according to a company statement. Excluding a one-time charge for merger-related expenses, Compaq earned $0.06 per share in the quarter, ended Dec. 31, 2001.

Although revenue showed a sequential boost of about 14 percent from a dismal third quarter, it was down 26 percent from the fourth quarter of 2000, the company said.

Analysts polled by Thomson Financial/First Call had expected the company to post earnings per share of $0.01 for the quarter, on revenue of just over $8 billion.

Earlier this month, Compaq revised its previous, gloomy forecast for the quarter, saying the company would turn a profit on revenue of about $8 billion after a loss in the third quarter.

For the full year, Compaq reported a net loss of $785 million, or $0.47 per share, compared with a net profit of $569 million, or $0.33 per share, for 2000. Revenue dipped 21 percent to $33.5 billion, from $42.2 billion the previous year. Excluding special items, net income for the year was $256 million, or $0.15 per share, the company reported.

The company expects moderate growth over the first half of this year as corporations focus on making their IT infrastructures "bulletproof" in the wake of the Sept. 11 attacks, Chief Executive Officer Michael Capellas said in a conference call with press and analysts. Compaq projects revenue of $7.6 billion in the first quarter, he said.

Capellas voiced continued support for Compaq's proposed merger with Hewlett-Packard Co. (HP), which is expected to go to a shareholder vote next month but has run into opposition from major HP shareholders. The deal remains the best way to move Compaq's business forward, he said.

"The merger will make the combination an even more strategic partner for its customers," Capellas said.

In the fourth quarter, revenue grew more abroad than in the U.S., with a 22 percent gain outside the U.S. led by Europe and Latin America, the company said. Compaq expects the European market, which led with 31 percent revenue growth, to remain stronger than the U.S. in the first quarter, said Peter Blackmore, executive vice president of sales and services at Compaq.

Results improved in the fourth quarter in the company's enterprise, services and access businesses, Capellas said. The access business includes conventional PCs, Internet access products and technologies, entertainment devices and personal wireless mobility products.

The third quarter ended Sept. 30 saw a weak economy, disruptions caused by the Sept. 11 terrorist attacks and a severe typhoon in Taiwan knock Compaq to a loss of $0.07 per share.

"2001 was the most difficult year ever for the PC business," with revenue down across the industry, Capellas said.

Ongoing declines in PC prices now are being offset somewhat by upward price pressure on some components, including DRAM (Dynamic Random Access Memory) and flat-panel displays, as well as CD-RW (CD-Rewritable) drives, of which there have been some shortages, Compaq officials said.

Initiatives within Compaq to reduce inventory and operating expenses have improved the company's ability to make money and will continue, officials said.

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

Show Comments

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?