Compaq profits decreased 14% in 4th quarter

Article Abstract:

Compaq Computer Corp will post earnings of $79.1 million for FY 1989 4th qtr; the 14 percent decline is the first ever in the company's financial history. Analysts were expecting a much steeper fall. Sales improved 18 percent to $788.1 million. Net profit for 1989 will be $333.3 million on revenue of $2.88 billion. Stockholders will receive $7.77 per share. Compaq cites a general softening of the domestic microcomputer market as the main reason for the decline. Compaq is cautious about 1990, suggesting the market will grow by only five to 10 percent, with worldwide growth of 20 percent anticipated. Compaq management expects to grow faster than the domestic market. Analysts are cautious about 1990 profits, and project earnings of only $9 to $10 dollars a share. Sales of Compaq's new notebook computer and the SystemPro 386 file server are expected to spur earnings in 1990.

Finance, Profits, Profit, Fourth Quarter

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Businessland is Compaq's land yet once again

Article Abstract:

Businessland Inc and Compaq Computer Corp are patching things up after a disagreement between the two resulted in Compaq's removal of Businessland from its roster of retailers in Apr 1989. The renewal of relations will help both companies, especially Businessland, which has seen its profits fall steadily since the split. On the news, Businessland shares jumped $2, closing at $10.75, while Compaq shares are also up $3.625 to close at $92.25. The split was caused by Businessland's demands of special treatment from Compaq, such as better discounts and other incentives, which the retailer receives from other manufacturers. Compaq refused to go along with the terms and was angered when Businessland offered its sales force a commission for selling IBM products that was four times higher than the one given for selling Compaq products.

Computer and software stores, Computer stores, Distribution channels, Vendor Relations, Retail/Reseller Channel, Businessland Inc., BLI

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Small PCs swarming to market

Article Abstract:

Competition is increasing in the notebook-sized computer market. Compaq Computer Corp will introduce its long-awaited model, giving the current market leader Zenith Electronics Corp and others serious competition. Compaq's product is faster and has more memory than equal-sized computers, and the company has not eliminated features found in bigger machines. Compaq's computer weighs only 6 pounds and are priced competitively, at $2,400 to $5,000. GRiD Systems Corp has introduced a 4.5 pound computer, for $2,400, that features a writing surface instead of a keyboard, an electronic pen and the ability to read block printing. These computers are part of a trend toward making the microcomputer smaller.

Hand-held computers, Handheld computers, Product development, Product information, Laptop computers, Portable computers, Zenith Electronics Corp., ZE, Laptop/Portable Computer, Trends, Grid Systems Corp.

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