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Friday, July 23, 1999
"The real voyage of discovery consists not in making new landscapes but in having new eyes." -- Marcel Proust
Compaq Insider Named CEO
Ending a three-month-long search, Compaq (Nasdaq: CPQ) took investors by surprise by naming as its new president and CEO Michael Capellas, a company insider who had been Compaq's acting chief operating officer (COO), effective immediately. The company had ousted former President and CEO Eckhard Pfeiffer and the company's CFO in the wake of warning in April that its first-quarter results would come in less than half of analysts' estimates.
Given the earnings disappointment and Compaq's apparent effort to clean house up top, many analysts had expected the company to find a new leader from without, not from within. Actually, Capellas is still fairly new to the company. He's been acting COO and responsible for overall strategic planning, organizational realignment, and all operations since June 2. Before that, he was chief information officer, a post he filled just last August. Prior to joining Compaq, Capellas was a manager at Oracle Corp. (Nasdaq: ORCL), SAP (NYSE: SAP) America, and Schlumberger (NYSE: SLB).
Compaq Chairman Benjamin Rosen said, "Our choice was easy." The company is claiming that in just a few short weeks, Capellas has already "mobilized the organization, moving us forward at Internet speed. He has united and energized our entire management team around a sound strategic business plan. He has established clear lines of accountability."
Considering such confident words likely also were lavished upon booted CEO Eckhard Pfeiffer, it's far too early to know if in fact Compaq's new, relatively unknown CEO will indeed be the company's knight in shining armor. Stay tuned.
(Quarterly earnings per share versus that of the same year-earlier quarter and compared with analysts' mean estimate. Earnings exclude one-time charges and gains.)
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Anadigics (Nasdaq: ANAD) -- Q2 EPS: $0.12 (before charges) vs. $0.02 last year; estimate: $0.09
Ardent Software (Nasdaq: ARDT) -- Q2 EPS: $0.34 (before charges) vs. $0.20 last year; estimate: $0.24
BroadVision (Nasdaq: BVSN) -- Q2 EPS: $0.12 vs. $0.03 last year; estimate: $0.11
Gateway (NYSE: GTW) -- Q2 EPS: $0.56 vs. $0.38 last year; estimate: $0.55
General Instrument (NYSE: GIC) -- Q2 EPS: $0.24 (before gain) vs. $0.19 last year; estimate: $0.22
Halliburton (NYSE: HAL) -- Q2 EPS: $0.19 vs. $0.55 last year; estimate: $0.17
Harbinger Corp. (Nasdaq: HRBC) -- Q2 EPS: $0.08 (before charges) vs. $0.11 last year; estimate: $0.07
Merck (NYSE: MRK) -- Q2 EPS: $0.61 vs. $0.54 last year; estimate: $0.61
Onyx Software (Nasdaq: ONXS) -- Q2 EPS: $0.02 loss vs. $0.16 loss last year; estimate: $0.03 loss
Quantum Corp. (Nasdaq: QNTM) -- fiscal Q1 EPS: $0.05 vs. $0.02 last year; estimate: $0.10
Rainforest Cafe (Nasdaq: RAIN) -- Q2 EPS: $0.16 vs. $0.18 last year; estimate: $0.16
Reebok International (NYSE: RBK) -- Q2 EPS: $0.08 vs. $0.11 last year; estimate: $0.12
SportsLine USA (Nasdaq: SPLN) -- Q2 EPS: $0.55 loss vs. $0.41 loss last year; estimate: $0.56 loss
Starbucks (Nasdaq: SBUX) -- fiscal Q3 EPS: $0.13 (before charges) vs. $0.11 last year; estimate: $0.13
Sun Microsystems (Nasdaq: SUNW) -- fiscal Q4 EPS: $0.48 vs. $0.37 last year; estimate: $0.46
Shipping giant UPS makes TMF Puck's wish come true by announcing plans to go public. She talks to the company's CEO... Check out this week's StockTalk interview with the CEO of Internet advertising firm DoubleClick... Don't miss the Fool's Midyear Review 1999. We cover AT&T and the battle for broadband, Internet stocks, Winners and Losers, and more.
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