Compaq is buying Digital, aiming challenge at I.B.M

Article Abstract:

Compaq has acquired large corporate computer maker DEC for $9.6 billion in cash and stock. The computer industry's largest takeover positions Compaq, the leading PC manufacturer, to challenge IBM's systems and services businesses. Compaq now trails only IBM in worldwide computer manufacturing. The move echoes IBM's strategy of expanding beyond small computers to integrated networks in which a range of machines connect to hybrid digital systems. DEC was once considered the principal IBM challenger because its minicomputers cost less than the huge IBM mainframe computers. Compaq and other vendors then entered the market with less expensive and more accessible PCs, triggering a DEC slump. Compaq's growth will threaten midsize computer makers such as Sun Microsystems and HP. Compaq has more than doubled its sales to $24.6 billion and increased its market value by more than five times over the last three years.

Mergers, acquisitions and divestments, Company acquisition/merger, Digital Equipment Corp., DEC

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Is this an honest face? Use of recognition technology grows in everyday transactions

Article Abstract:

Biometrics, a sophisticated method of identifying people, is gaining popularity as a security measure. Less expensive and improved machines are testing consumers for a range of physical characteristics. Among the popular verified categories are face recognition, fingerprints and hand geometry. Users may encounter biometric technology in activities that include crossing borders and punching in at factories. The use of this technology raises questions about personal privacy and 100% accuracy, but has upside potential in deterring theft and criminal activity. Face recognition allows employers to lower costs and enables casinos to improve their security tactics. Face recognition also does not require extensive cooperation from subjects. Privacy advocates call for the US to adopt European-style laws which prohibit transfer of personal information.

Computerized Security Sys, Social aspects, Usage, Innovations, Computers, Digital computers, Privacy issue, Privacy, Technology development, Security systems industry, Security measures, Social issue, Social conditions, Biometry, Security systems, Biometric technology

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Compaq Computer expects more losses in 2d quarter; chairman predicts $237 million shortfall

Article Abstract:

Compaq Computer let investors know that revenue is down about to 15 cents a share. The company is now reorganizing to trim overhead by $2 bil this year. 1998 expenses totalled $34 bil. The business structure will be divided into 3 units: enterprise and services; personal computers; and consumer products, the fastest growing part of Compaq now. While overstock in inventory is no longer a drag on revenue, the company still faces sharp competition from Dell and other direct marketers. Presently, 15% of Compaq sales are direct via the Web and phone centers, a figure it hopes to raise to 25% by year end. Compaq traded at $22.50 a share, up 25 cents from yesterday.

United States, Finance

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