$70.3 million deficit posted by Compaq; first quarterly loss for computer maker; 1,400 job cuts planned

Article Abstract:

Compaq reports its first-ever quarterly loss of $70.3 million in 3rd qtr and the company will impose 1,400 layoffs to reduce costs. Revenues were $709.4 million, 17.8 percent lower than revenues of $863 in the same quarter the year previous. In that quarter, Compaq earned $123.6 million. The company will impose layoffs in its operating divisions, and everyone affected will leave by Dec 1991. Those who lose their jobs will receive career counseling and two weeks' severance pay for each year of employment. The goal is to make a 35 percent profit margin on sales. Separately, Control Data Corp reported a quarterly loss of $7.5 million on revenue of $344.9 million. In the previous year, Control Data earned $8.5 million on revenue of $434.1 million.

DELL, Layoffs, Layoff, Third Quarter, Financial Report, Losses, Control Data Corp., CDA

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Earnings fell 80% in period at Compaq

Article Abstract:

Compaq Computer Corp reports that earnings are down 80 percent in the 2nd qtr of 1991. Net income is $20.3 million, or 23 cents a share, compared to $104.3 million, or $1.18 a share, in the same period in 1990. Compaq's president and CEO, Joseph R. Canion, foresees problems in the 3rd qtr if economic conditions do not ease. Analysts are concerned that Compaq has not moved to cut costs, as Apple Computer and IBM have recently done, but Canion says that his company's costs already are low, and Compaq, he says, needs the staff that it has. Compaq's stock is up 50 cents on Wednesday, Jul 24, 1991, closing at $32.625.

Profits, Profit, Stock, Second Quarter

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