Hi hio: Just back in after a night out. Thanks for all the posts.
I can't believe Kumar. He pulled the knife out didn't he. Showed his bias. Still tryng to justify his "stuffing the channels" routine.
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"To analysts, it sounded like a replay of last year.
In the first quarter of 1998, investors learned the profits PC makers reported in the fourth quarter had been bolstered by excessive PC shipments at the end of 1997, which then sat unsold on distributors shelves, creating months of backlog.
That build-up led to a log-jam across the PC industry in the first-half of 1999 and a round of bruising price cuts to clear inventory. Earnings results at most major PC makers were crippled, and their
stocks suffered as well.
''It's almost like deja vu,'' Kumar said. ''In the December quarter, Compaq stuffed the channel to make the numbers'' he said, referring to Wall Street's earnings expectations for the company's fourth
quarter.
But Compaq spokesman Jim Finlaw denied that weak sales of commercial PCs during the first six weeks of 1999 had spurred an industry oversupply glut. ''Inventory is doing well,'' he said.
''We saw slow demand in North and Europe,'' Finlaw said of January sales. This was partially offset by what he said was strong demand in the Asia-Pacific region, including China and Japan, and''okay'' demand in Latin America. |
