View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
October 16, 1997updated 03 Sep 2016 12:34pm


By CBR Staff Writer

Compaq Computer Corp has pulled out all the stops this quarter with sales of units up 56% on last year’s total, helping the Houston, Texas-based computer manufacturer to beat the consensus of earnings estimates by 3 cents at $0.71per share (before merger related charges). Third quarter earnings rose 41.6% to $517m on revenue up 30.9% at $6.474bn but the figures include a one off charge of $44m relating to the earlier merger with Tandem Computers Inc (CI No 3,188). Compaq’s chief financial officer, Earl Manson, also hinted at a strong end to the year with comments about the company’s increasing market share. Confidence is at an all time high at the company, prompting the initiation of Compaq’s first ever cash dividend program. Shareholders will receive a surprise dividend of $.03 per share on an ongoing quarterly basis. The news was combined with the announcement of a two for one stock split and both schemes are aimed at widening Compaq’s shareholder base. The dividend will allow the big mutual funds to take an interest in the stock for the first time, dividends being a pre-requisite for highly conservative fund managers. The stock split, Compaq’s second in less than three months, has the aim of making the shares more accessible to individuals than the current $75 price allows. A dividend re- investment plan will be available to seasoned high tech investors with an anti cash dividend stance.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.