HOUSTON -Despite softness in the U.S. computer market and less-than-robust financials reported by other computer makers in the final three months of 2000, Compaq Computer enjoyed a 10 percent boost in revenue in the fourth quarter, reaching $11.5 billion, compared with $10.5 billion in the year-ago period.
Compaq said earnings were $515 million in the fourth quarter ended Dec. 31, up from $332 million reported in the same three months last year. The figure, however, excludes a $1.8 billion charge for the write-down of CMGI Inc. stock acquired in a non-cash exchange for the AltaVista Co. in 1999. Including the one-time charge, Compaq reported a net loss of $672 million in the fourth quarter.
"The strength of our enterprise business, international growth and solid services profitability offset softness in the North American personal computer market," said chairman/CEO Michael Capellas.
Compaq said North American revenue grew 10 percent, while overall fourth-quarter gross margin was 150 basis points higher in the period, reaching 23.7 percent, compared with the same three months last year.
Revenue for the full year totaled $42.4 billion, an increase of 10 percent over 1999. Net income from operations was $1.7 billion, up more than three-fold over the prior year. Including non-recurring items, net income for the full year, compared with 1999, was flat at $569 million.
"While market conditions will be difficult in the first half of the year, we will continue to differentiate ourselves by developing innovative products, integrating them into solutions, and serving the global market," said Capellas. "For the full year 2001, we are comfortable with analyst estimates of earnings per share growth in the 20 to 25 percent range."