clarinews@clarinet.com (02/02/90)
HOUSTON (UPI) -- Compaq Computer Corp. Thursday reported a 39 percent increase in sales and a 31 percent increase in net income for 1989, despite a slowing growth rate for the industry and a drop in fourth-quarter earnings. The computer maker reported fourth-quarter net income of $79.1 million, or $1.84 a share, a drop of 14 percent from of $92 million, or $2.18 a share, in the same quarter the previous year. Sales for the quarter were $788 million, compared with $667.7 million in the final quarter of 1988. ``The small decline in net income in the fourth quarter reflects the slowing growth rate of the PC market, coupled with an increased level of expenditures related to Compaq's entry into the PC Systems market with the Systempro product line,'' said Compaq President Rod Canion. ``We expect this slower market growth to continue in 1990.'' Net income for the full year was $333.3 million, or $7.77 a share, a 31 percent increase over $255.2 million, or $6.30 a share, in 1988. Sales for 1989 were $2.9 billion, a 39 percent increase over $2.1 billion in 1988. ``In 1989, the U.S. PC market experienced a slowing growth rate,'' Canion said. ``However, significant new products combined with strong growth in the European and international sales of our products made 1989 a good year for Compaq. ``Compaq's European and international sales grew 62 percent in 1989 over 1988, and exceeded $1 billion in annual revenue for the first time,'' he said. The increase moved Compaq to the No. 2 market share position in the European business PC market, according to Paris-based market researcher IEE Dataquest. North American revenues increased by 24 percent in 1989, Canion said. Compaq products are sold in 61 countries through a network of more than 3,000 authorized Compaq computer dealers.