Compaq Reports 142 Percent Increase in Net Income
HOUSTON (AP) _ Compaq Computer Corp., the fast-growing maker of IBM-compatible personal computers for business, reported Monday a 142 percent increase in net income for the first quarter of 1987 that came on a 47 percent rise in revenue.
Compaq earned $20.2 million, or 56 cents a share assuming full dilution, up from $8.3 million, or 27 cents a share fully diluted, a year earlier. Revenue rose to $211.0 million from $144.0 million.
The increase was due to strong sales of the company’s newest computers, the Compaq Portable III and new models of the Compaq Deskpro 286 and 386, said Rod Canion, president and chief executive.
The most recent performance also surpassed the company’s net income of $16.2 million, or 49 cents per share on a fully diluted basis, on sales of $186.9 million for the quarter ended Dec. 31, 1986.
Compaq reports earnings per share as if all shares convertible into common shares were converted, known as a fully diluted basis. Most companies put emphasis on their per-share earnings on the basis of the actual number of common shares outstanding.