Compaq ready to forge ahead

Friday 15th March 2002

With the merger between Hewlett Packard and Compaq likely to proceed within the next few weeks, barring legal hiccups, Compaq's New Zealand operation has declared itself ready to go forward whatever the outcome in the US courts.

"Plan A" - the merger goes ahead - appears to be the preferred option but a "Plan B," with nearly as attractive prospects has also been prepared in case of last-minute disaster in the US courts.

Part of Compaq New Zealand's enthusiasm for the future, whatever it may hold, presumably comes from particularly good recent results.

According to New Zealand Compaq managing director Russell Hewitt, Q4 2001 was "great," and Q1 2002 appears to be matching that performance.

The company recorded not only 11% overall growth last year but also $325 million revenue and a substantially increased profit margin; as usual, Compaq won't release specific figures about its operating profit but a chart Mr Hewitt presented indicated approximately 35% profit growth over 2000.

At over 20%, Compaq New Zealand's market share is outstanding in the Asia Pacific region, with only Compaq Singapore approaching that level of penetration.

Among Compaq's business divisions revenue split 23% to Compaq Global Services, 28% Enterprise sales, and 49% Access Business Group; actual profit split differently, however, at 27% CGS, 49% Enterprise and 24% ABG.

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