NEW YORK (CNN/Money) - Compaq Computer Corp. said Monday it expects to meet or beat analysts' first-quarter earnings expectations with sales of about $7.7 billion.

On average, analysts surveyed by First Call expect the company to earn a penny a share with revenue of $7.6 billion. That's right in line with raised guidance Compaq gave when it released fourth-quarter results in January.

"In the first quarter, we recorded more than $1 billion in major account wins in the healthcare, education and travel markets alone," Compaq Chairman Michael Capellas said in a statement.

A spokeswoman for Compaq (CPQ: Research, Estimates) said the company would not release further details until its official earnings report on April 18.

Also on Monday a judge in Delaware decided to allow Walter Hewlett's legal challenge to Hewlett-Packard's proposed buyout of Compaq to proceed, denying HP's request that it be dismissed.

The suit, filed last month in Delaware Chancery Court, claims that HP executives had used "corporate assets to entice and coerce" Deutsche Asset Management to vote in favor of the proposed deal.

Shares of Compaq rose 17 cents to $9.76 in after-hours trading on Instinet.