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HOUSTON -Despite marketplace worries about declining sales of PCs, Compaq Computer Corp. hiked third-quarter sales 22 percent to $11.2 billion, compared with $9.2 billion in the year-ago three months. Earnings were $550 million in the third quarter ended Sept. 30, a fourfold increase over the $140 million earned in the same three months in 1999.
Compaq's Consumer Group posted revenue of $2.1 billion, an increase of 45 percent over the prior year's third quarter. Segment operating income, however, decreased 3 percent to $63 million for the third quarter.
The group accounts for 19 percent of Compaq's revenue mix, up from 16 percent in the second quarter. The revenue increase was driven in part by strong portables sales, up 50 percent from a year earlier.
The company said it delivered strong revenue growth in all regions, with North America up 27 percent.
Third-quarter gross margin was 23.9 percent, 70 basis points above the 23.2 percent recorded in last year's third quarter. Operating profit increased more than fivefold when comparing year-over-year quarters, up $669 million to $789 million.
"Our results clearly demonstrate our tremendous momentum in the marketplace," said chairman/CEO Michael Capellas. "We are confident we can achieve 18 percent revenue growth and strong earnings per share improvement in the fourth quarter."
This TWICE webinar, hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.