Compaq have posted a net loss of $499 in quarter three compared to a profit of $557 million in quarter three of 2000. These are disappointing results as they are the first to be posted since the company merged with Hewlett Packard.

Michael Capelles, chief executive of Compaq, states “We do not anticipate dramatic changes in corporate IT spending, particularly through the first half of 2002. As for the forth quarter of 2001, we expect revenue to be in the range of $7.8 billion and a loss of about $0.03 per share”

It is reported that sales have fallen 33 per cent to $7.48 billion. This figure is below analyst’s expectations of $7.53 billion.