______________________________________________________
______________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: October 19, 1994
COMPAQ COMPUTER CORPORATION
(Exact name of Registrant as specified in its charter)
Commission file number 1-9026
Delaware 76-0011617
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
20555 SH 249, Houston, Texas 77070
(Address, including zip code,
of Registrant's principal executive offices)
Registrant's telephone number, including area code: (713) 370-0670
______________________________________________________
______________________________________________________
Item 5. Other Events.
The Registrant's news release dated October 19, 1994 with respect
to its interim financial results for the periods ended September 30, 1994
is attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Compaq Computer Corporation
October 19, 1994 /s/ Daryl J. White
--------------------------------------
Daryl J. White, Senior Vice President,
Finance, and Chief Financial Officer
(as authorized officer and as
principal financial officer)
<PAGE>
COMPAQ THIRD QUARTER SALES RISE
63 PERCENT TO RECORD $2.84 BILLION
Net Income Up 88 Percent
HOUSTON, October 19, 1994 -- Compaq Computer Corporation
(NYSE:CPQ) today announced record sales of $2.84 billion for the
third quarter ended September 30, 1994, a 63 percent increase over
the $1.75 billion reported in the same period of 1993.
Earnings per share rose 79 percent to $.75 compared with
$.42 last year. Net income was up 88 percent to $201 million
versus the third quarter of 1993.
Sales growth continued to be strong throughout all of the
Company's five geographical regions. North America sales grew 57
percent, Europe grew 50 percent and Japan, Latin America and Asia-
Pacific sales grew at a combined rate of 122 percent.
"Compaq continues to deliver excellent worldwide sales
growth," said Eckhard Pfeiffer, president and chief executive
officer, Compaq Computer Corporation. "In this challenging and
competitive environment we are particularly pleased with our
sales growth, market share gains, and strong net income growth.
Third quarter gross margin declined to 23 percent as we
anticipated. This level is consistent with our financial model
and reflects the business outlook for the remainder of the year and 1995.
While the PC industry remains volatile, we will continue to make the
financial and operational investments necessary to increase our marketshare
and at the same time strive for strong financial performance," said
Pfeiffer.
Third Quarter Highlights
The Company began production at its facilities in
Jaguarinua, Brazil, and Shenzhen, China, during the quarter.
A new class of database servers was also announced,
including new Pentium models, further increasing Compaq's
leadership position in the server marketplace. These new Compaq
ProLiant servers are the first to provide customers with a
tested, proven and optimized database platform.
The Company introduced its new family of Presario
multimedia consumer PCs. The new Presario models incorporate
cable-ready television, high-quality speakerphone, fax machine,
CD-ROM sound systems and a Personal Message Center in the easiest-
to-use Compaq PCs ever produced.
The next generation family of Contura 400 value-oriented
full-function notebooks was announced, rounding out a completely
refreshed Compaq portable PC offering during the year. Entering
the fourth quarter, Compaq's readily-available notebook lineup
now includes the advanced Compaq LTE Elite with the unique built-
in AC adapter, the Compaq Contura 400 with tilted keyboard and
wrist rest, and the ultra-portable Compaq Contura Aero that
weighs less than four pounds.
Background
Compaq Computer Corporation is a world leader in the
manufacture of desktop and notebook personal computers, and
servers. Founded in 1982, the Company reported 1993 worldwide sales
of $7.2 billion. COMPAQ products are sold and supported in more
than 100 countries through a network of more than 31,000 Compaq
marketing partners. Compaq also sells directly to customers
through COMPAQ DirectPlus at 1-800-888-5858.
FOR COMPAQ CUSTOMER SUPPORT AND INFORMATION, CALL 800-345-
1518.
(Attached is the Consolidated Balance Sheet and Statement of Income).
# # #
Compaq, Presario, Registered U.S. Patent and Trademark Office.
ProLiant, Contura, Aero, LTE and LTE Elite are trademarks of
Compaq Computer Corporation. DirectPlus is a service mark of
Compaq Computer Corporation. Product names mentioned herein may
be trademarks of their respective companies.
For further editorial information, contact:
Bob Beach
Compaq Computer Corporation
713-374-1560
Tony Sapienza
Miller Communications
617-536-0470
COMPAQ COMPUTER CORPORTATION
CONSOLIDATED BALANCE SHEET
(Unaudited)
ASSETS
September 30, December 31,
1994 1993
(in millions)
---------------------------
Current Assets:
Cash & cash equivalents $ 389 $ 627
Short-term investments 3
Accounts receivable, net 2,043 1,377
Inventories 2,301 1,123
Prepaid expenses and other current
assets 228 164
----------- -----------
Total current assets 4,964 3,291
Property, plant, and equipment, less
accumulated depreciation 907 779
Other assets 60 14
------------ -----------
$ 5,931 $ 4,084
============ ===========
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Notes payable $ 346
Accounts payable 832 $ 637
Income taxes payable 98 69
Other current liabilities 820 538
----------- -----------
Total current liabilities 2,096 1,244
----------- -----------
Long-term debt 300
-----------
Deferred income taxes 188 186
----------- ------------
Stockholders' equity:-
Preferred stock, $.01 par value: 10 million
shares authorized; none outstanding
Common stock and capital in excess of $.01 par
value: 400 million shares authorized;
258.4 million shares and 253.0 million
shares issued and outstanding 655 586
Retained earnings 2,692 2,068
----------- -----------
Total stockholders' equity 3,347 2,654
----------- -----------
$ 5,931 $ 4,084
=========== ===========
COMPAQ COMPUTER CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Nine months ended Quarter ended
September 30, September 30,
1994 1993 1994 1993
(in millions, except per share amounts)
----------------------------------------
Sales $7,615 $4,989 $2,838 $1,746
Cost of sales 5,682 3,813 2,185 1,333
------ ------ ------ ------
$1,933 $1,176 $ 653 $ 413
------ ------ ------ ------
Research & Development costs 165 126 58 47
Selling, general and
administrative expense 867 586 310 209
Other income & expense,net 58 51 14 13
------ ------ ------ ------
1,090 763 382 269
------ ------ ------ ------
Income before provision
for income taxes 843 413 271 144
Provision for income taxes 219 102 70 37
------ ------ ------ ------
Net income $ 624 $ 311 $ 201 $ 107
====== ====== ====== ======
Earnings per common and
common equivalent share:
Primary $ 2.33 $ 1.23 $ 0.75 $ 0.42
====== ====== ====== ======
Assuming full
dilution $ 2.33 $ 1.22 $ 0.75 $ 0.42
====== ====== ====== ======
Shares used in computing
earnings per common and
common equivalent share:
Primary 267.9 252.1 268.8 254.1
====== ====== ====== ======
Assuming full
dilution 268.1 254.1 268.8 255.6
====== ====== ====== ======
