Compaq lowers guidance, takes $500M charge for Q3

Compaq Computer expects third-quarter revenue to be below its former guidance because of the terrorist attacks in September and other related supply chain and logistics events, the company said.

Compaq now expects revenue to be between US$7.4 billion and $7.5 billion for the quarter, which ended Sept. 30, the company said Monday. Based on preliminary data for the quarter, the company also expects to report a loss, on an operational basis, of between $0.05 and $0.07 per diluted common share, Compaq said in a statement.

The attacks on Sept. 11 slowed market demand and disrupted transportation and logistics, Michael Capellas, Compaq's chief executive officer, said in the statement.

Compaq also said it expects a non-cash charge of approximately $500 million in the third quarter, primarily related to Compaq's investment in CMGI Inc., Compaq said.

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