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 Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
Slideshows
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
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