Compaq Message Board - Msg: 9615535

STOCKTALK

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 : Compaq

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: rupert1 who wrote (61624)	5/19/1999 12:39:00 PM
From: rudedog	Read Replies (1) of 97611

victor - I'm sure we would have known if there was a 20% across the board cut being pushed - there are too many posters here and on the yahoo thread who would have " heard it through the grapevine". But reduction in say variable expenses, OPEX, or some other metric is not only possible but quite likely. In January of 1998 Pfeiffer demanded and got a 50% reduction in variable expenses for the 1Q98 and 2Q98 periods to help keep the revenue shortfall from taking earnings negative. I would also quibble with the characterization of CPQ as "bare bones". CPQ generated $24B in revenue with 22,000 employees, why should they regard less than twice the revenue with more than 3 times the employee base as "bare bones"? There are obviously some business units which are not pulling the way CPQ is used to doing. It would not surprise me to see CPQ spin off a bunch of peripheral and little known businesses which came in the DEC package. DEC had a host of small operations which had barely credible market niches even in the $200K per employee DEC world. In a CPQ model targeted on 5 times that efficiency those backwater businesses are just dead weight.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next