Compaq introduces new computers and quarterly results

Office World News, Jun 2000

Compaq has unveiled new Alpha server computers that it hopes will move it into the top tier of suppliers of powerful Internet computers. Early tests running financial applications show the machines handle twice the number of active users than a similar Sun model, says Compaq systems architect, Dave Fenwick. Employing two levels of communications switches, the design mimics that of parallel supercomputers. Compaq vice president, William W. Heil, says the company has orders for 200 of the new machines which sell for $100,000 to more than $1 million. Compaq is also spending $100 million to bring applications developers back into its fold and to cultivate Unix software developers such as Oracle.

In related news, sales of investments pumped up Compaq's first quarter profit while revenue flattened due to a continued slowdown in corporate computer sales. Compaq reported first quarter net income increases of 16% to $325 million, or 19 cents a share from $281 million, or 16 cents a share, a year earlier. Sales for its investment portfolio added $68 million, or three cents a share, to the earnings. Revenues rose only 1% to $9.51 billion as corporate sales of PCs and big "server" computers declined due to the year 2000 changeover.