______________________________________________________
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: March 1, 1996
COMPAQ COMPUTER CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 1-9026 76-0011617
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation or organization) File Number)
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
______________________________________________________
<PAGE>
Item 5. Other Events.
The Registrant's news release dated March 1, 1996, regarding
its 1996 first quarter business outlook 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
March 1, 1996 /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 Computer Corporation P.O. Box 692000 News Release
Public Relations Department Houston, Texas 77269-2000
Tel 713-514-0484 Fax 713-514-4583
COMPAQ
Compaq Updates Business Outlook
HOUSTON, March 1, 1996 -- Compaq Computer Corporation
(NYSE:CPQ) today said that it will step up promotional
programs and take selected price reductions to achieve first
quarter sales objectives. "While we expected seasonally
slower sales in January," said Eckhard Pfeiffer, president
and chief executive officer, "February sales have not met
anticipated growth levels. Although we have no additional
evidence of a market slowdown, we do see a higher level of
competitive pressure, especially in North America."
"Compaq is taking immediate actions to increase the
sell-through of its products and achieve its sales plan for
the quarter," said Pfeiffer. "We expect to show sales
growth of approximately 35 percent over the $2.96 billion
achieved in first quarter 1995. The promotional activities
and pricing actions we are taking put pressure on first
quarter gross margins, which are likely to be below the 21.7
percent of fourth quarter 1995. We are also taking
immediate actions to adjust our operating expenses to lower
levels. We expect these actions to maintain earnings above
the $.80 per share recorded in the first quarter of 1995."
Compaq Updates Outlook 2-2-2
Outlook
"While market conditions will continue to be
competitive, we fully intend to expand our business and grow
our marketshare profitably in 1996," said Pfeiffer. "We are
confident that next generation notebook PCs, Pentium Pro-
based desktops and servers, and multimedia consumer PCs to
be introduced throughout the year will enhance our
competitive position and support our financial objectives.
Compaq expects sales, margins and profitability to improve
in the remaining quarters of the year. And, despite
quarterly fluctuations, Compaq will remain focused on its
long-standing gross margin model of 23 percent."
Forward Looking Statements
The statements about estimated results contained in
this release are preliminary and based on partial
information and management assumptions. The company will
announce its actual results for the first quarter 1996 on or
about April 24, 1996. Except for the historical information
contained herein, the matters discussed in this news release
are forward-looking statements that involve risks and
uncertainties. Potential risks and uncertainties include
market responses to pricing actions and promotional
programs, continued competitive factors and pricing
pressures, changes in product mix, the timely development
and acceptance of new products, and inventory risks due to
shifts in market demand. Further information on the factors
that could affect the company's financial results are
included in the company's SEC filings, including the
Form 10-K for the year
Compaq Updates Outlook 3-3-3
ended December 31, 1995, which will be filed shortly, and
the Form 10-Q for the quarter ended September 30, 1995.
Company Background
Compaq Computer Corporation is the world's largest
supplier of personal computers, offering desktop PCs,
portable PCs, servers and options. The company reported
1995 worldwide sales of $14.8 billion. Compaq products are
sold and supported
in more than 100 countries through Compaq marketing partners
and sold directly to customers through Compaq Direct Plus at
1-800-888-5858. Compaq provides 24-hour
customer support and can be reached through the Compaq
forums on America Online, CompuServe, Internet
(http://www.compaq.com), and Prodigy, or by calling 1-800-OK-
COMPAQ. Product information and reseller locations can be
obtained by calling 1-800-345-1518.
# # #
Compaq, Registered U.S. Patent and Trademark Office.
Product names mentioned herein may be trademarks and/or
registered trademarks of their respective companies.
For further editorial information, contact:
Compaq Computer Corporation
Bob Beach, Yvonne Donaldson 713-514-1560
Miller/Shandwick Technologies
Donna Ruane 617-536-0470
