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Archive for Wednesday, July 11, 2001

Compaq blames slow sales for layoffs

July 11, 2001

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— Compaq Computer Corp. will lay off 4,000 more workers this year, nearly doubling layoffs it announced earlier, as sales in Europe decline.

Compaq said Tuesday it would report second-quarter operating profits of 4 cents per share July 25, in line with analysts' forecasts. The company would take a $490 million restructuring charge in the quarter.

Revenues would be less than expected at $8.4 billion, well below the Thomson Financial/First Call consensus view of $8.81 billion.

Echoing comments from other tech companies, Compaq blamed the sales shortfall on worsening conditions in Europe.

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