Compaq on Wednesday said its fourth-quarter earnings, excluding items, fell sharply as technology spending by corporations declined.
Compaq, which plans to merge with competitor Hewlett-Packard Co., said that it earned 6 cents per share in the fourth quarter, excluding a $36 million charge for merger-related expenses. That is down from 30 cents per share in the year-ago period, which excluded a $1.8 billion write-down on an equity investment.
Including the charge for this quarter, the company posted net earnings per share of 5 cents.
On Jan. 7, Compaq told investors it expected to post a profit instead of its previously expected loss on revenue of more than $8 billion, compared with the $7.6 to $7.8 billion it had projected.
The company said revenue fell to $8.5 billion, down 26 percent from the $11.5 billion in revenues it posted a year earlier.
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