Compaq Message Board - Msg: 3602766

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Technology Stocks : Compaq

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To: Jimbo Cobb who wrote (19303)	3/4/1998 8:04:00 PM
From: FuzzFace	of 97611

MF reports Dell down 7 in after hours. fool.com GOATS Dell Computer (Nasdaq: DELL) traded down approximately $7 to $132 in after-hours trading after key supplier Intel (Nasdaq: INTC) said it expects to report Q1 revenues of approximately $5.85 billion, down 10% sequentially from Q4 1997 and the first fiscal quarter last year. Intel said its turns business from OEM (original equipment manufacturer) customers has been weaker than expected. Revenues from turns mean orders that are shipped immediately. This indicates that inventory may be a little more full than the industry expects, but meshes well with the guidance on pricing that Compaq (NYSE: CPQ) provided at the recent Merrill Lynch conference. The other part of the equation has to do with Dell pushing back inventory on supplier Intel, as Dell's days' sales of inventory decreased rapidly last quarter. In all, Intel made the important point that this is an inventory problem and not an end market problem. The end market can still grow in the middle of the 15-20% yearly range experienced in recent years while the suppliers to that market can experience periodic backups in matching production with that growth in demand. Intel fell more than $10 to $76 in after-hours trading.

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