With first quarter profits marginally up – which came as no surprise as the company had said they would be flat, Compaq Computer Corp reckons it has successfully managed the largest product transition in its history, noting that its ability to achieve higher sales was hampered by shortages of server products and add-on options, by product mix, and by distribution contraints in late March. Latin America weaker substantially. Gross profit margins were 24.5% of revenues, which grew 30% to $2,960m.There is worry that Compaq is still overstocked with 80486 machines, and inventories stood at $2,100m, up from $2,000m in the previous quarter.
