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.
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