$929 million dollars!!!! That's a lot of merchandise.
Fez
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Acer boosts earnings with first Dell order
By Bloomberg News
Special to CNET News.com
July 7, 1999, 5:50 a.m. PT
Acer, Taiwan's leading computer maker, won a $929 million order from Dell Computer, helping bolster earnings as it aims to double operating profit, local media reported.
The order would be its first from Round Rock, Texas-based Dell, the Commercial Times reported. Acer won out over Taiwanese rivals such as Quanta Computer, Mitac International, and GVC, the paper said.
Acer president Simon Lin declined to confirm the order, saying only that Dell was one of eight companies with which it is in negotiations. "Both sides are negotiating and no other details are available," he said in an interview.
Acer, whose customers include IBM, jumped 2.5 percent to $2.54. It was Taiwan's second most active stock by value.
The order, for which shipment is scheduled for the first quarter of next year, comes as Acer heaps one-time gains on top of what it expects to be a doubling of 1999 operating earnings. Net earnings slumped by a third last year to a five-year low of $77 million.
Earlier this month, it reaped $40.3 million in capital gains by selling 23 percent of its money-losing chip unit. The sale of a stake in API and two other affiliates are expected to net $99 million.
Last month, Acer said it will buy $8 billion worth of products and technology by 2006 from IBM while selling "multibillions" of dollars of equipment back to IBM.
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