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LONGonDELL
re<I wouldn't be surprised to see it take a breather.>
Dell Could Face Tough Time Sustaining Strong Earnings Growth
New York, July 19 (Bloomberg) -- Dell Computer Corp. might have a tough time sustaining its profit margins and earnings growth as other computer powerhouses, such as International Business Machines Corp. and Compaq Computer Corp., turn up the competition with plans to copy Dell's winning formula of direct computer sales, the New York Times reported in its ''Market Watch'' column. What's more, computer networks designer Vanstar Corp., which shares the same customer base as Dell, warned last week that its first-quarter earnings would be hurt by price declines for computer products. Vanstar's average sale prices for May and June were 21 percent lower than the year-earlier period and that doesn't bode well for Dell, whose sales growth fell 22 percent during the past four quarters, the paper said.
Shares of the Round Rock, Texas-based computer maker rose 3 1/8 to 116 7/8 Friday, though, amid optimism that demand for Microsoft Corp.'s Windows 98 software will spur more personal- computer sales. (NYT 7/19 3-1 www.nytimes.com)
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