To ALL: Dell reconfirmed strong demand in the cc this afternoon.
NEW YORK (CNNfn) - A Dell Computer Corp. executive Monday said demand is strong in the PC market, despite the tumble tech stocks have taken in the last week.
Speaking at a conference call hosted by Bear, Stearns & Co. Inc., Dell Chief Financial Officer Tom Meredith said his company is in a position where it can gain market share worldwide.
Meredith also said business for other computer manufacturers remains strong, a statement that contradicts what many other computer companies have been reporting. Computing bellwethers, such as Intel Corp. and Compaq Corp. last week warned of lower-than-expected first-quarter revenues, citing weak sales and backed-up inventory among the principal factors.
Andrew Neff, a Bear, Stearns technology analyst, said Dell's inventory structure is part of the reason the company believes it is in good shape.
"Most of Compaq's pricing issues is on older product lines," Neff said. "Dell, with their seven-day inventory, is a fresh product line."
Meredith also pointed out that while there is room for improvement in increasing revenues, the company is looking to leverage its position in its Web-sales business for further growth.
"We're looking to shift a larger percentage to Internet sales, including corporate and large institutional business," said T.R. Reid, a Dell spokesman.
"Businesses, education, and government account for 90 percent of our total sales, but only about half of our online sales. So there's a huge opportunity in that area."
Dell (DELL) shares dropped considerably in Monday's trading, falling 6-1/8 to 63-1/8
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/Jeff |
