Compaq Says Its Distributors Will Build Some PCs to Order

Compaq Computer Corp., the No. 1 personal computer maker, said Monday it will contract with its distributors to help build some PCs to order, a new strategy aimed at cutting costs and boosting slow sales.

Compaq also will start selling its Prosignia line for small businesses, which had been sold only directly through Compaq and select resellers through U.S. retailers.

The company also introduced a new server and a new notebook computer with an Advanced Micro Devices Inc. processor for the Prosignia line.

Compaq is wrestling with sluggish sales to small businesses, the main buyers of Prosignia products. Having distributors Tech Data Corp. and Ingram Micro Inc. build the machines to a customer’s order, much like Dell Computer Corp. does for its PCs, will help Compaq move more quickly and cut manufacturing costs. At the same time, Compaq will not alienate its distributors, through which it sells most of its machines.

The distributors will build the machines in Houston, near Compaq’s headquarters, and will staff the centers that take orders from dealers and deliver the PCs to dealers.

Compaq will continue selling Prosignia PCs directly to buyers via its own Internet and telephone sales.

Compaq shares rose 25 cents to close at $31.50 in New York Stock Exchange trading. Ingram Micro jumped $1.19 to close at $19.50, also on the NYSE, while Tech Data zoomed $2.63 to close at $19.13 on Nasdaq.