Compaq Computer Corp says that profits and sales for the first quarter should be higher than analysts’ expectations because of continuing strong demand for its products: according to president Rod Canion, president, sales should exceed $425m against most analysts’ predictions of between $360m and $390m, and earnings per share should also exceed expectations; the company says that greater than expected sales in Europe were a contributing factor to outstanding first-quarter sales, with demand for the Deskpro 386/20 continuing strong worldwide.