NEW YORK: Computer firm Compaq Computer Corp. on Thursday said it signed two
contracts, including a three-year accord worth at least $200 million with
Raytheon Co., under which it will provide computers and data storage equipment.
The agreement, which Compaq said is worth up to $250 million, comes at a time
when the company is being scrutinized for its ability to keep or win customers
amid the uncertainty over its proposed $22 billion merger with competitor
Hewlett-Packard Co.
Compaq also said that it had extended an information technology pact with
telecom company Ericsson for $125 million a year over five years. Compaq had
beat out competitors for both contracts, said Peter Blackmore, Compaq executive
vice president of sales.
"They would not have selected us if they had any doubts either
way," Blackmore said. "I think it demonstrates our ability to do large
roll-outs of these projects."
Under the agreement with Raytheon, Compaq will provide desktop computers,
notebook computers, servers and workstations to 196 Raytheon locations
worldwide.