Compaq turned to profit in Q4

Compaq turned to profit in Q4

Compaq Computer posted financial results for the fourth quarter of 2001 that beat analysts' expectations and its own earlier revenue estimates, though revenue still lagged behind its performance of a year earlier.

The company reported net income of US$92 million on revenue of $8.5 billion for the quarter.

Although revenue showed a sequential boost of about 14 per cent from a dismal third quarter, it was down 26 per cent from the fourth quarter of 2000.

Earlier this month, Compaq revised its previous, gloomy forecast for the quarter, saying the company would turn a profit on revenue of about $8 billion after a loss in the third quarter.

For the full year, Compaq reported a net loss of $785 million compared with a net profit of $569 million for 2000. Revenue dipped 21 per cent to $33.5 billion, from $42.2 billion the previous year. Excluding special items, net income for the year was $256 million.

The company expects moderate growth over the first half of this year as corporations focus on making their IT infrastructures "bulletproof" in the wake of the September 11 attacks, Chief Executive Officer Michael Capellas said in a conference call with press and analysts. Compaq projects revenue of $7.6 billion in the first quarter.

Capellas voiced continued support for Compaq's proposed merger with Hewlett-Packard (HP), which is expected to go to a shareholder vote next month but has run into opposition from major HP shareholders. The deal remains the best way to move Compaq's business forward, he said.

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