Tech Giants Post Strong Financial Results Amid Industry Shift

Strategic Insights -

Compaq and Hewlett-Packard topped the financial results chart in a quarter when most tech companies showed impressive growth, but Intel and Microsoft lagged behind. The personal computer market leader, Compaq, saw its revenues jump by a staggering 63% to $2.8 billion, with profits soaring 88% to $201 million. Meanwhile, Hewlett-Packard's sales hit $7 billion in a quarter, up from $10 billion in a year, thanks to its dominance in the laser printer market and recent growth in PC sales.

Key Takeaways:

  • Compaq's price-cutting policy continued to yield impressive results, with revenues jumping by 63% to $2.8 billion and profits soaring 88% to $201 million.
  • Gateway 2000's sales grew by 61% as it expanded operations in Europe, threatening to overtake Dell in the PC market.
  • Sun's Unix workstation business looked healthy, with sales increasing by 33% to $1.3 billion and profits jumping 131% to $38 million.
  • Hewlett-Packard's sales hit $7 billion in a quarter, thanks to its dominance in the laser printer market and recent growth in PC sales.
  • IBM continued its dramatic turnaround, with profits of $710 million and a growth in quarterly turnover without the help of its Federal Systems Division, which it sold off to Loral.
  • Parallan Computer suffered a near 100% decline in quarterly sales after IBM dropped its deal with the company, resulting in losses of $1 million.
  • Apple increased its sales by 15% to $9.2 billion, with profits jumping from $87 million to $310 million, and shipped over a million Macs in its last quarter.

Statistics:

  • Compaq's revenue growth: 63%
  • Compaq's profit growth: 88%
  • Gateway 2000's revenue growth: 61%
  • Sun's sales increase: 33%
  • Sun's profit increase: 131%
  • Hewlett-Packard's sales: $7 billion
  • IBM's profits: $710 million
  • Apple's revenue growth: 15%
  • Apple's profit growth: 253%

Sources:

  • "Big Companies, Sober Results" by Jack Schofield, Computer Weekly
  • Compaq financial results
  • Hewlett-Packard financial results
  • Sun Microsystems financial results
  • IBM financial results
  • Apple financial results