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 (Date of earliest event reported): April 9, 1999
COMPAQ COMPUTER CORPORATION
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 1-9026 76-0011617
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(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
20555 SH 249
HOUSTON, TEXAS 77070
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(Address of Principal Executive Offices) (Zip Code)
(281) 370-0670
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(Registrant's telephone number, including area code)
(Former Name or Former Address, if Changed Since Last Report)
ITEM 5. OTHER EVENTS.
In a release dated April 9, 1999, Compaq Computer Corporation (NYSE:
CPQ) announced that based upon a $9.4 billion revenue estimate and a less than
favorable sales mix, the Company now expects to report a profit of
approximately $.15 per share for the quarter ended March 31, 1999.
ITEM 7. EXHIBITS.
Exhibit 99 News Release dated April 9, 1999 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.
Dated: April 9, 1999
COMPAQ COMPUTER CORPORATION
By: /s/ Linda S. Auwers
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Linda S. Auwers
Vice President,
Associate General Counsel and
Assistant Secretary
EXHIBIT 99
COMPAQ COMPUTER CORPORATION P.O. BOX 692000 NEWS RELEASE
PUBLIC RELATIONS DEPARTMENT HOUSTON, TEXAS 77269-2000
TEL 281-514-0484
FAX 281-514-4583
HTTP://WWW.COMPAQ.COM
[LOGO OF COMPAQ COMPUTER CORPORATION APPEARS HERE]
FOR IMMEDIATE RELEASE
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COMPAQ ANNOUNCES PRELIMINARY FIRST QUARTER RESULTS
HOUSTON, TX, April 9, 1999 - Compaq Computer Corporation (NYSE: CPQ)
announced that, based on preliminary analysis of its results for the quarter
ended March 31, 1999, it expects to report results below analysts' estimates.
Based upon a $9.4 billion revenue estimate and a less favorable sales mix, the
Company now expects to report a profit of approximately $.15 per share.
"The quarter's shortfall reflects lower than anticipated market demand
and increased competitive pricing in the commercial PC sector," said Earl
Mason, Senior Vice President and Chief Financial Officer.
These statements regarding estimated results are preliminary. The
Company expects to announce its final results on April 21, 1999.
BUSINESS OUTLOOK
"While market conditions will continue to be competitive, we fully intend
to expand our business and grow market share profitably in 1999," said Eckhard
Pfeiffer, President and Chief Executive Officer. "We will roll out our
enterprise strategy next week as 4,500 customers join us in Houston for
Compaq's Innovate 99. The Company will continue its aggressive drive of
reduction of cost and operating expenses in the face of a very competitive
market."
COMPANY BACKGROUND
Compaq Computer Corporation, a Fortune Global 100 company, is the second
largest computer company in the world and the largest global supplier of
computer systems. Compaq develops and markets hardware, software, solutions,
and services, including industry-leading enterprise computing solutions,
fault-tolerant business-critical solutions, networking and communication
products, commercial desktop and portable products and consumer PCs. The
Company is an industry leader in environmentally friendly programs and
business practices.
Compaq products are sold and supported in more than 100 countries
through a network of authorized Compaq marketing partners. Customer support
and information about Compaq and its products are available at
http://www.compaq.com or by calling 1-800-OK-COMPAQ. Product information and
reseller locations are available by calling 1-800-345-1518.
This release contains forward-looking statements based on current
expectations that involve a number of risks and uncertainties. The potential
risks and uncertainties that could cause actual results to differ
materially include the implementation of operations and systems improvements,
particularly those associated with the Optimized Distribution Model; the
operational integration associated with the acquisition of Digital Equipment
Corporation; inventory risks due to shifts in market demand; timely
development, production, continued competitive factors and pricing pressures;
market responses to pricing actions and promotional programs; acceptance of
the products; and changes in product mix. Further information on the factors
that could affect the Company's financial results are included in its SEC
filings, including the Form 10-K for the year ended December 31, 1998.
# # #
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 information, contact:
Compaq Computer Corporation Jim Finlaw 281-514-6137
[email protected]
Compaq Computer Corporation Investor Relations 281-514-9549
Compaq Computer Corporation Investor Relations Fax 800-433-2391
More financial information on Compaq is available at
http://www.compaq.com/corporate/ir.
