Five years ago: Compaq strikes gold, plans budget PC

Compaq reports an increase in earnings and aims to be the third largest computer company

First published 23 January, 1997

On the heels of IBM's positive announcement yesterday, Compaq reported a formidable increase in earnings for the October-December fourth quarter of 1996 and strong worldwide sales.

Compaq made a $462 million profit for the quarter, up 43 per cent from the equivalent quarter of 1995. Sales were up 15 per cent year on year to $5.4 billion from $4.7 billion. The US computer giant said it has produced its millionth server and now has $4 billion in cash, but remained tight-lipped on future acquisitions.

"We aim to be a $40 billion company and to be the third largest computer - not PC - company," said Joe MacNally, Compaq VP and UK managing director. He added Compaq's aims for 1997 are to attack the home market by lowering the price of its consumer machines below £1,000, and concentrate on small- to medium-sized businesses. Compaq also plans to bolster service and support, and develop an Internet and electronic commerce strategy.