Compaq Expects Upbeat News For 1Q

Compaq Computer

The executives on Monday said that, based on preliminary financial data, Compaq expects to meet or beat current analyst expectations.

The company estimates revenue for the quarter will be about $7.7 billion. However, this is down more than 16 percent compared with the $9.2 billion recorded for the same quarter last year.

Analysts are expecting earnings per share to be about 1 cents, according to First Call. This compares with actual earnings of 5 cents per share last year. First Call estimates for next quarter are 4 cents per share.

In a prepared statement, Chairman and CEO Michael Capellas said the quarter's results will demonstrate the company's focus on strong execution. "I am particularly pleased with our progress during these tough market conditions," he said. "Our unwavering commitment to stay focused on our customers was key to maintaining our momentum in the marketplace. In the first quarter, we recorded more than $1 billion in major account wins in the health-care, education and travel markets alone."

Jim Milton, senior vice president and North America general manager for Compaq and soon-to-be regional manager for the Americas for HP's post-merger Enterprise Systems Group, told CRN earlier that Compaq has signed more than $900 million in storage sales contracts, amounting to more than 63 Pbytes of raw capacity, worldwide between Sept. 3, when the merger was announced, and mid-March. Of that, $300 million came from U.S. solution providers, he said. Separate figures for servers or other product lines were not available, he said.

Compaq is expected to announce its first-quarter results after market close on April 18.

The company announced its expectations after market close on Monday. Compaq shares were up 3 cents for the day at $9.59.