Compaq Posts Third-Quarter Loss 2Compaq Posts Third-Quarter Loss 2

Compaq Computer says the slumping IT economy, a typhoon that disrupted shipments from Taiwan, and the aftermath of the Sept. 11 terrorist attacks are responsible for a third quarter in which it posted its second consecutive quarterly loss and saw revenue decline by one-third from the previous year. For the period ended Sept. 30, Compaq (CPQ--Nasdaq) reported a loss of $120 million. Revenue fell 33% from a year ago to $7.48 billion. Chairman and CEO Michael Capellas says demand for IT products continues to be weak around the world; this has forced Compaq and other vendors to aggressively cut prices. Compaq's proposed merger with Hewlett-Packard also is hurting sales, analysts say. Technology Business Research analyst Lindy Lesperance says customers "don't want to be stuck with a product that doesn't survive the merger."