22:00 DJS Dell Computer's Shares Fall 4% After CFO Talks To Analyst
22:00 DJS Dell Computer's Shares Fall 4% After CFO Talks To Analyst
NEW YORK -(Dow Jones)- Dell Computer Corp.'s shares fell more than 4%
Tuesday after the fast-growing personal-computer maker's chief financial
officer held a conference call with PaineWebber's PC analyst.
A Dell (DELL) official and one participant, however, said the tone of
the call was upbeat.
Dell was the most actively traded stock Tuesday on the Nasdaq market,
with 21.9 million shares exchanged, compared with average volume of 15.6
million shares. It fell $5.125, or 4.4%, to close at $110.875.
Dell finance chief Tom Meridith spoke with PaineWebber's Walter
Winnitzki and a group of portfolio managers Tuesday in what company officials
said was "a very positive" conference call. But concerns apparently swirled
about the company's average selling prices, which have declined in recent
months, one listener said.
Meridith explained, as he has in the past, that Dell was responding to
lower prices for PC components, such as Intel Corp.'s (INTC) computer chips,
the listener said.
A Dell official said Meridith commented on his belief that PC demand
"continued to be robust." He also outlined new, higher-margin products like
high-end storage products, new laptop computers and servers. Winnitzki didn't
return calls for comment.
One person familiar with the call said Meridith's comments weren't a
big change from what he has said in other recent events.
Rumors that there was "negative news on the call is factually
incorrect," the Dell official said.
Dell, based in Round Rock, Texas, is noted for efficient production and
low prices. The company again blew by its competitors in the first quarter,
continuing the tremendous sales and profit growth that pushed its stock to
lofty levels. In revenue, the company passed IBM's PC division to become the
world's second-largest PC seller. Dell's revenue grew 52% to $3.92 billion.
Some rivals are trying to streamline themselves to match Dell's build-to-order
and direct-selling efficiencies.
-By Christopher Grimes; 201-938-5253
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07/21 10:00p CDT |
