Net income from operations for the quarter was $515 million, or $0.30 per diluted common share, an increase of $0.14 cents. Results exclude a previously announced one-time $1.8 billion charge primarily for the write down of CMGI Inc. stock acquired in a non-cash exchange for AltaVista Co. in 1999. Including the one-time charge, the company reported a net loss of $672 million, or ($0.39) per diluted common share.
The strength of our enterprise business, international growth and solid services profitability offset softness in the North American personal computer market, said Michael Capellas, chairman and chief executive officer. Our server and storage revenue grew 20 percent year-over-year with strength across all our high-end product lines. Industry standard server revenue was up 24 percent, business critical server revenue was up 17 percent and storage revenue was up 17 percent. Revenue outside of the United States grew 26 percent in constant currency.
Compaq revenue grew 10 percent in North America; 24 percent in Latin America; 26 percent in Asia Pacific; 36 percent in Japan; and, 16 percent in Greater China. Europe, Middle East, and Africa grew 3 percent in dollars or 22 percent in constant currency.
Fourth quarter gross margin, as a percentage of revenue, was 23.7 percent, up 1.5 percentage points compared to a year ago. Operating expense totaled $2 billion, or 17.1 percent of revenue for the quarter, down a percentage point year-over-year.
In summary, revenue was up 10 percent, gross margin was up 1.5 percentage points, operating expense was down a full percentage point and operating profit was up 80 percent. It’s all about profitable growth, Capellas said.
Revenue for the year ended December 31, 2000, totaled $42.4 billion, an increase of 10 percent over the prior year, or 15 percent in constant currency.
Net income from operations was $1.7 billion, up more than three-fold over the prior year. Including non-recurring items, net income for the full year was flat with last year at $569 million, or $0.33 per diluted common share.
