At Deadline Briefs

HP to Pay $105M to Settle Dispute

Hewlett-Packard Co. said it has agreed to pay the Canadian government $105 million (U.S.) to settle a dispute related to IT contracts that HP took on when it acquired Compaq Computer Corp.

In March, Canada's Department of National Defence claimed it had been bilked out of the money by a contract-invoicing scam involving payments that were supposedly being made to subcontractors.

HP last week said there's no evidence that any of its employees derived illegal benefits from the alleged scheme. But the company added that it decided "to honor its contractual obligations, rather than engage in protracted litigation." HP said it will try to recover the settlement amount "from the individuals and companies responsible."

Dell Reports 21% Revenue Increase

Dell Inc. reported a 21% increase in revenue for its first quarter and attributed the performance to strong sales of its servers and notebook PCs. U.S. corporate sales were the highest they have been in three and a half years, said Jim Schneider, Dell's chief financial officer. "We're not seeing huge replacements, but people are more active," he added. Dell earned a $731 million profit on revenue of $11.5 billion in the quarter, which ended April 30.

BEA Falls Short on Software Sales

BEA Systems Inc. said revenue rose 11% year over year in its first quarter, which ended April 30. But it added that sales of its middleware dropped 2% and were below plan. CEO Alfred Chuang blamed the shortfall on a software transition and disruptions from sales force changes. BEA said its head of sales for the Americas has left the company in one of several management changes that were announced.

Copyright © 2004 IDG Communications, Inc.

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