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Technology Stocks : IBM
IBM 303.23-0.4%Nov 26 3:59 PM EST
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To: J R KARY who wrote (5517)8/26/1999 10:29:00 AM
From: Arrow Hd.  Read Replies (1) of 8218
 
If we read the words carefully we will see a scenario similar to the first quarter. In the first quarter, internal objectives or "quotas" were set extremely high to eliminate the sandbagging of business that appeared to have happened in the fourth quarter 98 when Server sales slipped in the last two weeks as sales teams that had made "quota" went to sleep. So the first quarter quotas were made so high that they were virtually unattainable and led to reports such as the pathetic call the MS analyst made the end of March (yes, I will never get over that since it cost me a lot of opportunity at that time). Anyway, at the end of the quarter everything probably was adjusted internally but the analysts couldn't see it and the quarter was blown out. Everyone underestimated the quarter on both revenue and profit. Remember that Helmig worked for IBM for over 25 years so he knows the internal routines. So what he is saying is that there may be a slowdown of sorts, maybe won't be double digit growth, there will be some Y2K indigestion, but that the company's guidance to the street is attainable because it is realistic and the internal objectives at this point may not be realistic but they will stay where they are, at least for now, to drive the incentive plans and a quarterly performance that will insure the street is not disappointed. FWIW, that is how I interpret his call. Only an opinion of course.
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