Five years ago: Compaq strikes gold, plans budget PC

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.