The giant PC maker today reported record revenues of $7.3 billion for its fourth quarter, ended December 31, 1997, up 23 percent from one year ago. Net income rose 37 percent, to $667 million, or 84 cents per share, versus the same period last year.
According to First Call, analysts had expected a profit of 83 cents a share before a two-for-one stock split on January 20.
The company reported year-end sales of $24.6 billion for 1997, up from $20 billion one year earlier. Net income skyrocketed by 60 percent, to reach $2.1 billion, or $2.69 per share, for the year. After nonrecurring charges, net income was $1.9 billion, or $2.37 per share, Compaq said.
Compaq CEO Eckhard Pfeiffer said sales of enterprise computing technology, including servers, workstations, clustering technology, storage products, and massively parallel systems, accounted for 37 percent of the company's fourth quarter business.
Pfeiffer said the Asian economic crisis, which has buffeted many high technology companies, should not seriously affect the company's bottom line going forward. "Our outlook, despite weakness in Asia, calls for a strong 1998," he said in a statement.