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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (133322)	6/17/1999 9:08:00 PM
From: kemble s. matter	Respond to of 176387

Mohan, Hi!!! RE: PC sales in the region, excluding Japan, jumped 24 per cent in the first quarter of this year, according to International Data Corp (IDC) figures. Thanks Mohan....I think the buy signal for the PC's is near... Best, Kemble

To: Mohan Marette who wrote (133322)	6/18/1999 2:15:00 AM
From: stockman_scott	Respond to of 176387

Mohan: Compaq is "Absolutely a Ship Without a Captain"....FYI... Boy, they sure open up GREAT opportunities for DELL <G>...Check this out... <<Friday June 18 1:22 AM ET Compaq To Post Loss, Cut Jobs, Stock Volatile By Denise Duclaux NEW YORK (Reuters) - Compaq Computer Corp. (NYSE:CPQ - news) Thursday warned of a second-quarter loss as pricing pressures slammed its business, but the world's biggest personal computer maker unveiled a restructuring plan that included job cuts and heavy investments in Internet and telephone sales. Compaq's share price tumbled then recovered as investors tried to digest news of the unexpected loss and the promise of a leaner computer giant. Shares of Compaq have fallen more than 50 percent this year as the Houston-based company shocked Wall Street with a slack first quarter and a string of executive departures. ''This is absolutely a ship in a storm without a captain,'' said James Meyer, an analyst at Janney Montgomery Scott Inc., a Philadelphia brokerage firm. Compaq stock closed up 25 cents at $22.50 in composite trading on the New York Stock Exchange, where it was the most actively traded issue on volume of more than 25 million shares. Earlier in the session, the stock slid to its lowest point in two years, at $20.06. The stock hit a record high of $51.25 in January. Compaq said it sees a loss of up to 15 cents per share for the second quarter, although Wall Street had expected a profit of 20 cents, according to research tracking firm First Call. The company said it continues to suffer from pricing pressures in the personal computer segment, poor revenue growth and a noncompetitive cost structure. In the second quarter, Compaq said revenues and gross margins should be flat to down from the first quarter. ''At these (share price) levels, I think most if not all the risk is priced in,'' said Ashok Kumar, a Piper Jaffray analyst. Compaq expects a major restructuring charge in the third quarter, but sees revamping benefits appearing in the next two to three quarters. The company aims to cut $2 billion in operating costs after the plan is in full swing. Compaq executives said the company plans to create three global business groups -- enterprise solutions and services, personal computer, and consumer -- each with a separate profit-and-loss accountability. The company said in a conference call it would cut an undetermined amount of jobs from its total work force of 69,000. It will open 17 call centers this year and tweak its Internet strategy to allow for better computer configuration. The company aims to achieve a 25 percent run rate through direct sales by the fourth quarter, moving to cash in on the lower cost structure of the direct models used by companies like Dell Computer Corp. (Nasdaq:DELL - news) and Gateway Inc. (NYSE:GTW - news) ''We are at the threshold of a new company -- a Compaq that is leaner, more efficient, more customer-responsive, more Internet-centric and more direct capable,'' said Chairman and acting Chief Executive Officer Benjamin Rosen in the call. Compaq has also been struggling to digest its $8.4 billion acquisition last year of Digital Equipment Corp., a business computers and consulting services supplier. Kumar said he sees a gradual recovery for Compaq as it realigns its many sales channels and hires a new head. ''They do have the right building blocks, for them the key is to get a chief executive officer who can execute them,'' Kumar said. ''They are essentially biting the bullet and taking the pain now as opposed to prolonging it for an indeterminate period. So I think it's a step in the right direction.'' In April, Eckhard Pfeiffer was forced to resign as president and chief executive officer after the disclosure that Compaq's first-quarter profits would be half of Wall Street's expectations. Several other executives have since departed and the company continues to search for Pfeiffer's replacement. During the call, Rosen said the search was well on its way but did not say when the position would be filled. Compaq said the enterprise solutions and services group, headed by Enrico Pesatori, senior vice president and group general manager, is being formed by combining the company's enterprise computing group and Compaq services. Compaq said the personal computer group will continue to be led by Mike Winkler, senior vice president and group general manager, while the consumer group will continue to be headed by Mike Larson, senior vice president and group general manager. Compaq also said it is creating a global sales and marketing group, led by Peter Blackmore, senior vice president, sales and marketing. The company said it will establish a dedicated organization to manage its e-commerce activities and form a new customer advocacy organization. >>