H-P Finds Memory Flaw in Notebooks

Updated from 2:13 p.m. EDT

Hewlett-Packard (HPQ Quote) announced a worldwide "voluntary memory module replacement program" Friday for owners of certain H-P and Compaq laptop computers.

Shares of the No. 2 PC maker fell 21 cents, or 1%, to $20.81 Friday while rivals IBM (IBM Quote) slid 44 cents or 0.5%, to $89.55 and Dell (DELL Quote) lost $1.10, or 3.2%, to $36.02.

Late Friday, Merrill Lynch analyst Steve Mulinovich issued a note reaffirming earning estimates for H-P, declaring "H-P's recall of certain laptop memory modules [Friday] will have no material effect on H-P's financial performance." ...