COMPAQ Computer said yesterday that operational improvements and a better mix of higher margin products helped boost its profits by 9 per cent in the second quarter.

Compaq, the world's biggest supplier of personal computers, said its net income for the three months to June 30th expanded to $267 million (£165.4 million), or 96 cents a share, from 90 cents a share. The earnings beat Wall Street estimates. According to First Call, which tracks analysts' earnings estimates, the consensus was for 91 cents a share.