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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: January 26, 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
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Item 5. Other Events.
The Registrant's earnings press release for the year and quarter ended
December 31, 1993 dated January 26, 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
January 26, 1994 /s/ DARYL J. WHITE
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Daryl J. White, Senior Vice President,
Finance, and Chief Financial Officer
(as authorized officer and as
principal financial officer)
<PAGE>
Compaq Computer Corporation P.O. Box 692000
Public Relations Department Houston, Texas 77269-2000
Tel 713-374-0484 Fax 713-374-4583
COMPAQ REPORTS RECORD FOURTH QUARTER AND YEAR
1993 EARNINGS PER SHARE UP 112%; SALES INCREASE 75% TO $7.2
BILLION
HOUSTON, January 26, 1994 -- Compaq Computer
Corporation (NYSE:CPQ) today announced record 1993 sales of
$7.2 billion, an increase of 75 percent over the $4.1
billion reported in 1992. Earnings per share for 1993
increased 112 percent to a record $5.35, compared with
earnings per share of $2.52 for 1992.
The Company's sales and earnings per share for the
fourth quarter ended December 31, 1993 also reached record
levels. Fourth quarter sales were $2.2 billion, a 55
percent increase over the $1.4 billion reported for the same
period in 1992. Earnings per share for the fourth quarter
were $1.73 versus $1.10 for the same period in 1992.
"Compaq's record sales growth is the result of
unprecedented customer demand for our products throughout
the world," said Eckhard Pfeiffer, president and chief
executive officer, Compaq Computer Corporation. "We
experienced strong demand for desktop, portable and server
products in our traditional markets and dramatic growth of
consumer sales through retail outlets," he said.
The resulting sales growth in 1993 set records in every
region. North America grew 100 percent to $3.7 billion;
Europe (including Eastern Europe, Middle East and Africa)
grew 44 percent to $2.7 billion; other international markets
(including Japan, Latin America and Pacific Rim) grew 111
percent to $800 million. Worldwide unit shipments reached
3.1 million, an increase of 98% over 1992.
1993 HIGHLIGHTS
Compaq made significant gains in its goal to become the
leading supplier of personal computers worldwide. The
Company was credited with achieving the industry's largest
1993 market share growth by independent market research
firms Dataquest, Inc. and International Data Corporation
(IDC).
Customer Satisfaction
---------------------
During 1993 Compaq continued to deliver customer
satisfaction through a broad array of service and support
programs and by making its products easier to use. Compaq's
three-year warranty on all of its computers continues to be
the most comprehensive in the industry. The Company
significantly enhanced customer service and support for its
award-winning server products in September by announcing
CompaqCare for Systems.
Important ease-of-use achievements included the greatly
simplified customer setup for the Compaq Presario; the
innovative Tabworks user interface for Windows and the
industry's first "Plug and Play" ready product, the Compaq
Deskpro XE.
Product Technology
------------------
Compaq announced a record number of new products
during the year and continued to provide technology
leadership with such products as the Compaq ProLiant line of
servers, the Compaq Presario and Compaq Deskpro XE and the
convertible Compaq Concerto notebook computer. The Compaq
ProLiant broke new ground for the Company and the market by
providing an unmatched combination of performance, fault
tolerance, ease-of-management and value.
Total Delivered Cost
--------------------
With annual sales per employee reaching approximately
$700,000 in 1993, the highest among major computer
manufacturers, Compaq continued to improve its position as
one of the lowest cost producers of personal computers.
Significant material cost reductions and continuing cost
controls further enhanced the Company's competitive
position.
Distribution
------------
The Company made it easier for customers to buy its
products by expanding the number of worldwide marketing
partners from approximately 9,500 at the beginning of 1993
to more than 16,000. Geographic expansion continued to open
new markets for Compaq products in many regions of the
world. Compaq further enhanced its Asian operations in the
People's Republic of China with the September opening of a
Beijing sales office. The Company also expanded its
European reach by establishing subsidiaries in Hungary,
Poland and Portugal.
Company/Employees
-----------------
"Credit for our 1993 results belongs to all our
employees," said Pfeiffer. "Compaq's divisional structure,
aligned to key market segments, creates an environment for
committed effort, clear lines of responsibility, and
accountability. Compaq employees have the same interests as
our stockholders and share in our financial results. As a
result of Compaq's 1993 financial performance, the worldwide
profit sharing program paid out over $27 million to
employees."
In 1993 Compaq delivered on its promise to help protect
the environment by eliminating CFCs from all its
manufacturing processes; introducing a number of Energy Star
compliant desktop and notebook products; and by labeling
plastics on Compaq products with recycling codes to improve
the recycling process at the end of the product's life
cycle. In October, Compaq received a Stratospheric Ozone
Protection Award from the Environmental Protection Agency
for eliminating ozone-depleting substances.
1994 PLANS
"Compaq will increasingly leverage its strong brand
name to continue gaining market share in the consolidating
computer market," said Pfeiffer.
"We will focus our efforts on the business and consumer
customer segments and work to increase sales in government
and education. The company will announce a significant
number of new desktop, portable and server products to meet
a variety of customer needs.
"New product technologies will center around such areas
as multi media, mobile computing and communications, and
ease-of-use advancements such as "Plug and Play".
"We think it is especially important that the Company
is building a rapidly growing base of client-server and
enterprise computing solutions. These products and services
are enabling Compaq to play a larger role in the total
computing marketplace by providing customers everywhere with
new tools for the information age," said Pfeiffer.
CORPORATE BACKGROUND
Compaq Computer Corporation is a world leader in the
manufacture of servers, desktop and portable personal
computers. Founded in 1982, Compaq 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 16,000 Compaq marketing partners. Compaq also
sells directly to customers through Compaq DirectPlus at 1-
800-888-5858.
For customer support and information, call 1-800-345-
1518.
(Attached is the Consolidated Balance Sheet and
Statement of Income)
# # #
COMPAQ and Deskpro are registered trademarks of Compaq
Computer Corporation (Registered, U.S. Patent and Trademark
Office. Presario, ProLiant and Concerto are trademarks of
Compaq Computer Corporation. CompaqCare is a service mark
of Compaq Computer Corporation.
Windows is a trademark of Microsoft Corporation. Tabworks
is a trademark of Xerox Corporation. Other products
mentioned herein may be trademarks or registered trademarks
of their respective companies.
For further editorial information, contact:
Bob Beach
Compaq Computer Corporation
713-374-1560
Tony Sapienza
Miller Communications
617-536-9470
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COMPAQ COMPUTER CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited)
ASSETS
December 31,
1993 1992
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(in millions)
Current assets:
Cash and cash equivalents $ 627 $ 357
Accounts receivable, net 1,377 987
Inventories 1,123 834
Prepaid expenses and other assets 164 140
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Total current assets 3,291 2,318
Property, plant, and equipment,
less accumulated depreciation 779 808
Other assets 14 16
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$4,084 $3,142
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 637 $ 516
Income taxes payable 69 36
Other current liabilities 538 408
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Total current liabilities 1,244 960
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Deferred income taxes 186 176
Commitments and contingencies ----------------
Stockholders' equity:-
Preferred stock, $.01 par value:
10,000,000 shares authorized;
none outstanding
Common stock and capital in excess
of $.01 par value: 400,000,000 shares
authorized; 84,348,000 shares and
79,830,000 shares issued and
outstanding 586 400
Retained earnings 2,068 1,606
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Total stockholders' equity 2,654 2,006
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$4,084 $3,142
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COMPAQ COMPUTER CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Year ended Quarter ended
December 31, December 31,
1993 1992 1993 1992
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(in millions, except per share amounts)
Sales $7,191 $4,100 $2,202 $1,423
Cost of sales 5,493 2,905 1,680 1,040
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1,698 1,195 522 383
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Research and development
costs 169 173 43 39
Selling, general, and
administrative expense 837 699 251 195
Other income and expense,
net 76 28 25 16
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1,082 900 319 250
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Income from consolidated
companies before provision
for income taxes 616 295 203 133
Provision for income
taxes 154 97 52 44
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Income from consolidated
companies 462 198 151 89
Equity in net income of
affiliated company 15
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Net income $ 462 $ 213 $ 151 $ 89
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Earnings per common and common equivalent share:
Primary $ 5.45 $ 2.58 $ 1.74 $ 1.11
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Assuming full
dilution $ 5.35 $ 2.52 $ 1.73 $ 1.10
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Shares used in computing earnings per common
and common equivalent share:
Primary 84.7 82.6 86.8 80.9
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Assuming full
dilution 86.3 84.7 87.1 81.6
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