Excerpt from December 10Q: Nota bene, Server Sales increase: "During the third quarter and first nine months of fiscal 1998,
enterprise system units increased 313% and 306%, respectively, over the
comparable periods of the prior fiscal year." Those are high end, high MARGIN, xeon chips. The ones that INTC couldn't make fast enough. If you think Gateway was good, you ain't seen nothing yet... and check out the growth in foreign sales: "The
increase in net sales was led by the Americas, where net sales increased 63% and
66% in the third quarter and first nine months of fiscal 1998, respectively,
from the comparable periods in fiscal 1997. Europe also experienced growth,
where net sales increased 45% and 42% in the third quarter and first nine months
of fiscal 1998, respectively, over the same periods of fiscal 1997."
The bottom line is that Feb 16 earnings will be absolutely awesome. With growth prospects lead by server and foreign sales.
Link:<http://www.sec.gov/Archives/edgar/data/826083/0000950134-97-009155.txt>
Net Sales
Consolidated net sales increased 58% and 61% in the third quarter and first nine
months, respectively, of fiscal 1998 over the comparable periods of fiscal 1997,
and increased 13% over the second quarter of fiscal 1998.
The increase in consolidated net sales was primarily attributable to increased
units sold. Unit volumes increased 54% and 59% in the third quarter and first
nine months, respectively, of fiscal 1998 compared to the same periods of fiscal
1997. Unit volumes increased 17% in the third quarter of fiscal 1998 compared to
the second quarter of fiscal 1998. While desktop products continue to remain the
primary driver of unit volumes (comprising 85% of total units shipped during the
third quarter of fiscal 1998), the growth rate in enterprise systems (which
includes both servers and workstations) continues to exceed the growth rate of
desktop products. During the third quarter and first nine months of fiscal 1998,
enterprise system units increased 313% and 306%, respectively, over the
comparable periods of the prior fiscal year. On a sequential basis, enterprise
units increased 61% in the third quarter of fiscal 1998. Notebook products also
experienced unit growth increasing 38% and 60% in the third quarter and first
nine months of fiscal 1998, respectively, compared to the same periods of fiscal
1997 and 8% on a sequential basis.
6
<PAGE> 8
In addition to increased unit volumes, consolidated net sales for the third
quarter and first nine months of fiscal 1998 were affected positively by
increased average revenue per unit of 2% and 1%, respectively, over the same
periods of the prior fiscal year. However, average revenue per unit declined by
3% in the third quarter compared to the second quarter of fiscal 1998.
Net sales increased in all geographic regions in the third quarter and first
nine months of fiscal 1998 as compared with the same periods of fiscal 1997. The
increase in net sales was led by the Americas, where net sales increased 63% and
66% in the third quarter and first nine months of fiscal 1998, respectively,
from the comparable periods in fiscal 1997. Europe also experienced growth,
where net sales increased 45% and 42% in the third quarter and first nine months
of fiscal 1998, respectively, over the same periods of fiscal 1997.
Additionally, net sales in the Asia-Pacific and Japan region increased 52% and
76% in the third quarter and first nine months of fiscal 1998, respectively,
over the same periods of the prior fiscal year. |
