SI
SI
discoversearch

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 : Dell Technologies Inc.
DELL 133.20+5.7%Nov 26 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: rudedog who wrote (127385)5/20/1999 8:10:00 PM
From: jim kelley  Read Replies (1) of 176387
 
Dog,

I read that opinion. This analyst also assigned this increased expense to the SG&A. I am not an accountant but it seems that the added expenses for manufacturing personnel should go COGS as a manufacturing variance cost. Sales support staff costs should go to SG&A.

Also, another analyst (during the CC) pointed out that the revenue per employee was down. The response was that they needed to add personnel for the Tenn factory etc. The Tenn factory needs about 1000 trained employees. Again this is not a detailed disclosure so all we know is that cost are up somewhat due to personnel. I am going to look at this in more detail with some additional information I have collected.

Other unconfirmed disclosures have margins in China and South America half that of the US. Hmmm... could CPQ have been dumping PC's there like they were doing in China??? That would have negative effect on DELL's overall margins. Even so Meredith expects the overall margin to remain the same for the rest of the year.

Anyway this is a complex problem and being off by a 100M here and 50 M there will throw the whole analysis off. There is no substitute for credible company guidance because the possible explanations are wide ranging as I am sure you learned with your EP experience last quarter.

Sounds like a monumental war going on the PC universe!
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News