SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: robbie who wrote (48232)6/19/1998 12:59:00 PM
From: jim kelley  Read Replies (3) of 176387
 
Robbie,

Re: CPQ Inventory Policy

In order for CPQ to achieve the plan outlined, they will have to reduce shipments to the channel quarter to quarter by enough to compensate for the reduction in price protection and returns. They are going to have to do this while they are reducing the channel stuffing by 3-5 weeks. Thus, the total sales revenue loss will be 5-7 weeks.

If they want to accomplish this by September then they have to take a revenue loss equal to one half quarter. This will result in a massive loss for the quarter. Hence, they probably will not do this. Instead they will write their obsolete inventory off as part of the DEC merger. They will not achieve their objectives this quarter. It is highly unlikely that they will be profitable this year. This is the best case scenario. There are worse scenarios.

Basically, this is good for DELL and bad for CPQ.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News