Improved results expected for computer firms

Article Abstract:

The top four U.S. computer companies are likely to report better first-quarter figures as compared to last year. Demand for corporate PCs grew at around 10% in units, while customer PC demand great about 15% to 20%. The solid results of the first quarter are due in large part to revenue growth in double digits in the server market. International Business Machines Corp. is likely to report a rise in first-quarter revenue of almost 7%, or $18.8 billion. Growth is due to almost 15% growth in its computer-services unit. IBM's PC market is likely to report growth in revenue at a rate of about 15%. Demand for its main-frame computers and mid-range servers continues to fall, however. Sun Microsystems Inc. appears to be the beneficiary in the market for midrange servers. Sun is likely to report increased sales in its just-ended third quarter of 20% to $2.84 billion. Hewlett-Packard Co.'s revenue is likely to rise about 2% to 12.29 billion. Compaq Computer Corp. is expected to report a rise in first-quarter revenue of about 72% to $9.8 billion.

United States, Computers, Electronic Computer Manufacturing, Computers & Auxiliary Equip, Forecasts, trends, outlooks, Computer and Office Equipment, Office & Computing Machines, Financial analysis, Office equipment, Office equipment and supplies industry, Office equipment industry, Compaq Computer Corp., CPQ, International Business Machines Corp., IBM, Sun Microsystems Inc., SUNW

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Hewlett says flat earnings in quarter were a result of lower gross margins

Article Abstract:

HP reports that its flat earnings in the 3rd qtr 1992 reflect low gross margins and do not indicate any weaknesses in sales. HP's gross margins dropped to 43 percent in the qtr ended July 31 from 46.5 percent in the 2nd qtr. As a result the 15 percent increase in revenue to $4 billion from $3.5 billion in 3rd qtr 1991 failed to increase earnings growth. HP posts a profit of $191 million or 76 cents a share. When HP executives announced that the earnings would not meet analysts' prediction of $1.12 a share, stock value dropped considerably. HP is still considered a strong company, but some analysts are lowering their year-end earnings estimate to reflect the gross margin problem.

Computer peripheral equipment, not elsewhere classified, Profits, Financial Analysis Software, Third Quarter, Profit, Financial Report

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