Compaq Message Board - Msg: 11765892

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Compaq

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: rudedog who wrote (70680)	11/1/1999 4:33:00 AM
From: rupert1	Read Replies (1) of 97611

rudedog: Were there not statements in 2Q (at the time the reduction in channel partners was announced) that the eventual target for inventory in channel was about 7-10 days? In response to my post last week, you suggested that in 3Q CPQ had arrived at its ultimate target of 2 weeks. Consequently, you suggested, there would be no further reduction in pro forma revenues (booked revenues) to account for further reductions in inventory. Th 4Q usually sees a build-up of PC inventory in channel to insure that product is available for heavy seasonal demand (leading to a discounting of surplus inventory in 1Q). If this occurs again then booked revenues may see a temporary blip. A CNET article states that 3Q results show 3 weeks. Can you confirm the 2 weeks? If it was 3 weeks, do you think the push to 2 weeks (and consequent reduction in booked revenues) will come this quarter given the seasonal need for additional inventory? On the channel question - and leaving aside the special issue of booked revenues - do you think all the other cost savings expected from the reduction to 4 channel partners has been achieved? If so, should we not be getting a lot closer to DELL's costs by now?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next