Compaq Posts 2Q Loss, Warns About 3Q - 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 Posts 2Q Loss, Warns About 3Q

Compaq's new CEO, Michael Capellas, presented shareholders with dismal second-quarter earnings today and warned that improvements won't be seen in the next quarter, when Compaq says it will face a $700 million to $900 million restructuring charge as it closes plants and lays off up to 8,000 employees.

The troubled PC maker posted a net loss for the period of $184 million, compared with a net loss of $3.6 million for the second quarter last year, which included charges for the acquisition of Digital Equipment. Revenue for the period was $9.4 billion, compared with $5.8 billion for the quarter in 1998.

Capellas attempted to assuage investors by promising that his management team was already implementing a realignment, focusing efforts on simplifying Compaq's distribution strategy, creating more innovative products, and reducing costs. He attributed the company's poor performance to PC price drops and Compaq's noncompetitive cost structure, which inhibits revenue growth.

Compaq's services-related revenue increased to $1.6 billion from $460 million quarter over quarter, while costs associated with those services increased to $1.2 billion from $316 million. Enterprise products, including servers and storage equipment, increased 11% year over year, the company said.

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
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Slideshows
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Commentary
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
Register for InformationWeek Newsletters
Video
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
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