Compaq Computer Corp.
is reporting fourth quarter net income of $92 million (5 cents per share) on revenue of $8.5 billion. The nation’s number two computer maker behind Dell, the Houston-based Compaq said the fourth quarter performance was an improvement of $1 billion, or 14 percent, over the third quarter but still down 26 percent over the fourth quarter of 2000.
However, last year in the fourth quarter, Compaq posted a net loss of $672 million, or 39 cents per common share. Adjusted for special items, net income was $515 million, or $0.30 per diluted common share.
“Our fourth quarter results clearly demonstrate Compaq’s strong focus on execution and solid market momentum,” said Michael Capellas, chairman and chief executive officer. “Early last year, we outlined three strategic objectives for the company: extend our enterprise capabilities, grow and achieve critical mass in global services, and improve the economics of our PC business while increasing the velocity of our supply chain. There is still work to do, but we have made significant headway.”
Capellas predicted that first half growth “will be moderate and pent-up demand should drive a stronger recovery in the second half of the year. Accordingly, we expect first quarter revenue of approximately $7.6 billion and EPS of 1 cent, consistent with normal seasonal trends,”
Revenue for the fiscal year totaled $33.6 billion, a decrease of 21 percent from the prior year. Excluding special items for the year, net income was $256 million, or 15 cents per share, down 85 percent from the prior year. Reported net income for the full year was a loss of $785 million, or 47 cents per common share.