Dell Technologies Inc. Message Board

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 : Dell Technologies Inc.

DELL 128.43

+0.6%

Dec 24 12:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: rudedog who wrote (38289)	4/19/1998 2:20:00 PM
From: jim kelley	Read Replies (2) of 176387

Dog, This should thicken the ice I'm skating on. IMO, it is better to look at net profit because of the fluctuations in CPQ's other costs. Here is what I get: Q3-97 6474 562 Q4-97 7323 667 Q1-98 5687 16 Q2-98 5700* 0 Total Revenue= 25,184 Total Net Income= 1,245 Net Profit Margin= 4.9% They reported 9.1% net profit margin for Q4-97 based on virtual sales (A.K.A. channel stuffing). Thus, their profits are really 53% lower than they reported. Incidently their reported gross margins gapped down to 18% from the 27% in the previous quarter. Could this be due to the impact of the Sub-zero? * estimated revenue To be sure CPQ is still a power house but they are in a decline. I have not analyzed DEC yet but even a cursory glance at their financials suggests that this merger is not going to help CPQ profit margins or inventory turns. I made money on CPQ last year as a short term play but the conduct of their management does not leave me with a good feeling about the future of this company.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next