Compaq Earnings Fall On Weak Technology Spending

Printer-friendly version Email this CRN article

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.

Copyright 2000 Reuters Limited. All rights reserved.

Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.

Reuters shall be not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Printer-friendly version Email this CRN article