wsj_0904.xml
WSJ891026-0155
WSJ891026-0155
=
891026
=
891026
891026-0155
.
891026-0155
.
Technology
amp
Health
:
@
Compaq
Computer
@
Posts
a
51
%
Surge
@
In
3rd-Period
Net
@
----
@
By
Robert
Tomsho
@
Staff
Reporter
of
The
Wall
Street
Journal
Technology
amp
Health
:
@
Compaq
Computer
@
Posts
a
51
%
Surge
@
In
3rd-Period
Net
@
----
@
By
Robert
Tomsho
@
Staff
Reporter
of
The
Wall
Street
Journal
10/26/89
10/26/89
10/26/89
WALL
STREET
JOURNAL
(
J
)
WALL
STREET
JOURNAL
(
J
)
CPQ
CPQ
COMPUTERS
AND
INFORMATION
TECHNOLOGY
(
CPR
)
EARNINGS
(
ERN
)
COMPUTERS
AND
INFORMATION
TECHNOLOGY
(
CPR
)
EARNINGS
(
ERN
)
HOUSTON
HOUSTON
Compaq
Computer
Corp.
said
that
its
net
income
rose
51
%
in
the
third
quarter
,
bolstered
by
unusual
gains
from
its
investment
in
a
disk-drive
maker
and
reflecting
continued
growth
in
its
European
operations
.
The
computer
maker
said
net
jumped
to
$
87
million
,
or
$
2.02
a
share
,
from
$
58
million
,
or
$
1.40
a
share
,
a
year
earlier
.
Sales
increased
36
%
to
$
683
million
from
$
502
million
.
The
latest
quarter
's
results
,
however
,
included
a
pretax
gain
of
$
13.7
million
,
or
20
cents
a
share
,
in
the
carrying
value
of
the
company
's
investment
in
Conner
Peripherals
Inc.
and
a
$
7.6
million
gain
,
or
11
cents
a
share
,
from
the
sale
of
one
million
Conner
shares
.
Net
for
the
nine
months
was
$
254
million
,
or
$
5.94
a
share
,
up
56
%
from
$
163
million
,
or
$
4.06
a
share
,
a
year
earlier
.
Sales
rose
50
%
to
$
2.1
billion
from
$
1.4
billion
.
Net
for
the
year-earlier
nine
months
also
included
a
gain
of
$
9.7
million
,
or
15
cents
a
share
,
in
the
carrying
value
of
the
Conner
investment
.
Michael
Swavely
,
president
of
Compaq
's
North
America
division
,
attributed
the
company
's
third-quarter
performance
to
continued
increases
in
international
sales
,
which
accounted
for
43
%
of
the
company
's
sales
,
a
74
%
increase
from
a
year
earlier
.
``
Over
the
next
couple
of
years
we
would
not
be
surprised
to
see
Europe
and
international
-LCB-
sales
-RCB-
represent
50
%
of
the
company
's
revenues
,
''
he
said
.
During
the
third
quarter
,
Compaq
purchased
a
former
Wang
Laboratories
manufacturing
facility
in
Stirling
,
Scotland
,
which
will
be
used
for
international
service
and
repair
operations
.
Mr.
Swavely
said
the
new
space
will
allow
Compaq
to
increase
the
manufacturing
capacity
of
its
plant
in
Erskine
,
Scotland
.
In
New
York
Stock
Exchange
composite
trading
yesterday
,
Compaq
shares
fell
$
1.625
to
$
108.625
.