Compaq Computer Corp. posted record profits and...

Compaq Computer Corp. posted record profits and revenues in its first quarter, fueled by an unexpected jump in profit margins.

The Houston-based computer maker’s net income surged a better-than-expected 108%, to $213 million or $2.39 a share, from $102 million or $1.23 a share a year ago.

Sales jumped 41% to $2.3 billion from $1.6 billion.

Compaq’s net profit margins jumped to 9.4% from 6.9% in the fourth quarter.