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Microsoft Official Says Corporate PC Demand Improving,
But Still Laggard
June 15, 2000 7:47 PM
NEW YORK -(Dow Jones)- A Microsoft Corp. executive said Thursday that corporate demand for
personal computers has improved lately, but still is growing slower than the consumer market.
At a Bear Stearns investor conference, James Ewel, vice president of marketing at Microsoft (MSFT),
told a group of investors that the company started to see a slight uptick in corporate PC demand last
month, but that it's not back to complete health.
He said PC demand is in line with revenue guidance the Redmond, Wash., company has provided.
Ewel said Microsoft is confident the rollout of its new Windows 2000 operating system will pick up in
the second half of the year, as updates and new server software, like Exchange 2000, become
available.
"We think a lot more customers will make the jump, that's why we are bullish," Ewel said.
He briefly discussed Microsoft's Next Generation Windows Services, or NGWS, initiative, scheduled to
be unveiled next week, describing it as a "vision," that will be worked into upcoming products.
"It's more like a road map for the next five years," Ewel said.
Also at the conference Thursday:
- Gateway Inc. (GTW) Financial Chief John Todd said the San Diego company isn't going after the
low-end consumer PC business and will focus instead on specialized retail efforts. Gateway, which is
targeting $2.4 billion in second-quarter sales and earnings of 36 cents a share, also is anticipating
double-digit revenue growth in Europe in the second quarter ending this month.
Analysts surveyed by First Call/Thomson Financial estimate the company will earn 36 cents a share in
the second quarter.
- Compaq Computer Corp. (CPQ) Vice President Mary McDowell is seeing aggressive pricing from
International Business Machines Corp. (IBM) to grab a share of the Intel Corp. (INTC) server business.
A Compaq spokesman said the Houston-based computer maker's second quarter remains in line with
previous guidance and is looking for a stronger second half of the year.
Analysts estimate Compaq will earn 21 cents a share in the second quarter and $1.08 this year.
In April, Compaq said it backed analysts' estimates for 2000, though second-quarter earnings might
come in below expectations because of marketing expenses.
- A Motorola Corp. (MOT) spokesman told investors that its second quarter is tracing to the lower
guidance it gave Wall Street after its weak first quarter. He said he's confident the Schaumburg, Ill.,
company can improve its operating margins 200 basis points from the first quarter to the second
quarter as forecast.
Analysts estimate Motorola will earn 23 cents a share in the second quarter ending this month.
(Compiled from Dow Jones Newswires and other sources)
Copyright (c) 2000 Dow Jones & Company, Inc. |
