Compaq’s operating profit increases by $828 million

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Compaq Computer Corporation has announced second quarter 2000 net income of $387 million, compared with a loss of $184 million in the year-earlier period. The company reported worldwide revenue of $10.1 billion for the quarter ended 30 June 2000, compared with $9.4 billion in the second quarter 1999.

“We are pleased with our progress to date,” said Michael Capellas, president. “Revenue increased 8%, or 11% in constant currency. Gross margin percentage was up three points, and operating expenses decreased five percentage points over a year ago. The most powerful indicator of how far we’ve come is that operating profits increased $828 million over last year. We are delivering innovative products our customers want, while reducing annualized operating costs and expenses by more than $2 billion.

“Nowhere are the results of our efforts more evident than in our Industry Standard Server and Commercial PC businesses. Industry Standard Server revenue grew by 40 percent, further extending our leadership in building out the Internet infrastructure, while our Commercial PC business returned to profitability a quarter ahead of plan,” Capellas added.

“Our performance this quarter illustrates what Compaq’s competitive advantage is all about. Customer acceptance of our technology has never been stronger. Simply stated: Delivering better technology matters,” Capellas concluded.

Compaq products and services are sold in more than 200 countries directly to businesses, through a network of marketing partners, and directly to businesses and consumers through the company’s web site. Compaq markets its products and services primarily to customers from the business, home, government, and education sectors.

Compaq

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