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Technology Stocks : Compaq

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To: Roads End who wrote (48712)2/18/1999 1:37:00 PM
From: Windseye   of 97611
 
Steve,
I agree that the info on the site is simple and clear... great peek. But then take a look at the equally easy to read income statement, and there are a couple of differences that may be of concern. Cost of goods sold is 4 bil higher than in '97, while operating expenses are 1 bil higher. My reading is that lower cost machines have a smaller gross margin (higher cost of goods sold) and that the advertising expenses in '98 in order to push the various visions were must higher, or the DEC integration has been expensive. In any case the increase in revenues over the two years doesn't seem to have gotten to the bottom line as well as we might like or investors might have expected.

stockselector.com

Doug
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