Compaq, the US computer giant which leads the server market in Ireland, yesterday announced profits for 1996 of $1.3 billion (£812 million), an increase of 28 per cent on 1995. The company said worldwide sales grew to $18.1 million, compared with $14.8 billion the previous year. Compaq also reported a 43 per cent surge in fourth quarter profits, to $462 million. The manager of the firm's Irish distribution company, Mr Tom Keating, said continued emphasis on asset management had reduced Compaq's inventory by $1 million compared with the last quarter of 1995.

Industry sources said Compaq increased its revenue in Ireland last year by an estimated 50 per cent to £24.2 million.