Compaq goes to the shops

Compaq Computer has handed out a $20m investment in Canadian Systech Retail Systems.

The server company has also promised to partner Systech in engineering next-generation point of sale (POS) systems that incorporate wireless and internet connectivity.

Compaq will further benefit from the deal, as the joint venture will base its product development on the server maker's ProLiant server platform.

The investment will give Compaq a 25 per cent stake in Systech.

For Compaq, the deal will sweeten the bitter pill of having its earnings forecast revised down today.

ABN Amro was one of a number of investment banks that cut its forecasts for Compaq's 2001 and 2002 earnings, due to weakened consumer confidence in the US.

The bank cut 30 per cent from its 2001 estimates and a massive 70 per cent from its 2002 forecast.

Compaq shares fell by 10 cents to $8.72 on the news.