Earnings Report: Compaq's Profits Up, Vantive's Down - 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

Earnings Report: Compaq's Profits Up, Vantive's Down

Compaq ended its whirlwind year on a positive note, reporting growth in earnings and revenue for its fourth quarter ended Dec. 31. Compaq's revenue was $10.9 billion for the quarter, up 48% from the fourth quarter of 1997, partly due to additional sales resulting from Compaq's acquisition of Digital Equipment last June. The company reported a net profit of $758 million for the quarter, compared with $667 million last year.

Compaq took some quarterly losses earlier this year due to the acquisition. For the year ended Dec. 31, Compaq reported a loss of $2.74 billion, compared with a profit of $1.86 billion in 1997. Revenue increased from $24.6 billion to $31.7 billion.

Vantive Corp. saw revenue rise but profits decrease for its fourth quarter and fiscal 1998. In the fourth quarter, the front-office software vendor saw revenue gains of 26%, to $47 million, compared with $38 million for the same period last year. Net income for the period--not including a $1.2 million charge for the acquisition of Wayfarer Communications--was $2.2 million, or 8 cents per share, down 54% from $4.8 million in the same period last year.

For the year, revenue climbed 39% to $163 million, compared with 1997 revenue of $117 million. Net income before charges was $8 million, or 30 cents per share, down 43% from last year's net income before charges of $14.2 million. In a statement, Vantive chairman and CEO John Luongo attributed the revenue gains to sales of the latest version of the company's integrated front-office suite, Vantive 8.

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
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Slideshows
Reflections on Tech in 2019
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  12/9/2019
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
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