Compaq Computer Corp has finished its fiscal year off in style posting fourth-quarter net income that jumped 37% to $667m on revenue that saw 22.8% growth to $7.32bn. The PC manufacturer’s earnings amount to $0.84 per share – or $0.42 after the two-for- one stock split that became effective Tuesday – which hit the First Call consensus on the head. Compaq says its volume for the quarter grew at about two-and-a-half times the average industry rate. Unit shipments grew 43% Gross margins improved slightly to 27.6%. The company also upped its cash pile 66% year-over-year to $6.8bn. For the year, net income rose 40.7% to $1.86bn on revenue up 22.9% at $24.58bn. Those figures include a $252m charge related to the company’s Microcom and Tandem acquisitions. Year- ago results include a $52m restructuring charge. The company says it is looking forward to a strong 1998, despite the economic troubles in Asia, where Compaq generally sees about 10% of overall sales. It is confident that in the year ahead it can accelerate market share gains and continue to improve profitability. After the announcement Compaq shares gained $2.4375, or more than 8%, to $32.1875.
