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

To: jim kelley who wrote (134002)	6/23/1999 6:00:00 AM
From: stockman_scott	Respond to of 176387

FYI...<<Dell Computer, With One Eye on IBM, Sees Big Revenue Gains in Years Ahead By Evan Ramstad 06/23/1999 The Wall Street Journal (Copyright (c) 1999, Dow Jones & Company, Inc.) NEW YORK -- In comments aimed at convincing investors that Dell Computer Corp. remains on track, Chief Executive Michael Dell said the company could triple its revenue in the next few years. Speaking to reporters at PC Expo, an industry convention here, Mr. Dell even laid out a scenario in which Dell in five years could quadruple its sales to $90 billion, the size that International Business Machines Corp., the biggest computer company, is today. In a shorter amount of time, Mr. Dell said, "We think we can add $40 billion in revenue." Dell , which had sales of $18 billion in its fiscal year ended in January, is expected to see sales grow about 40% to $26 billion this year. With such a game plan, Mr. Dell appeared to be trying to reverse the momentum of Dell 's flagging stock. After the company recorded slower-than-expected revenue growth for its fiscal fourth quarter, Dell shares began to slip from a 52-week high of $55. During the past month, the stock has traded below $40, close to the level where it began the year. By contrast, Dell 's stock price tripled in 1997 and 1998. Dell shares yesterday fell $1.375 to $37.5625 on the Nasdaq Stock Market. Mr. Dell said he wasn't trying to make a guarantee or even forecast growth. Instead, he said, "You can cut it lots of different ways but you get the point: We see lots of opportunity." Dell already is growing faster than any personal-computer company has at this size. When Compaq Computer Corp., the biggest maker of PCs, reached $18 billion in sales in 1996, its growth the following year slowed to less than 20%. Mr. Dell has typically limited discussions of the company's prospects to vague goals, such as growing faster than the overall PC industry and raising the company's market share in regions below its average. But a spokesman says the company's executives recently began speaking more specifically because some investors don't see the "tremendous opportunity available to Dell based on conservative assumptions." However, to hit Mr. Dell 's rosiest scenario for $90 billion in sales in 2004 or 2005, the overall PC industry would have to grow by about 15% a year to $450 billion from $170 billion last year. Dell , meanwhile, would have to double its market share to 20%. Analysts said Dell has better growth prospects than any other PC company, but they questioned Mr. Dell 's assumption about PC industry revenue. "I think Dell can reach a 20% market share in five years," said Charles Wolf, analyst at Warburg Dillon Read in New York. "I just can't see the industry itself growing at the rate he's talking about." Mr. Dell said the company will soon launch its own Internet access service for consumers, something several of its rivals have already done. In addition, Dell plans to add auction sales of its products to its Web site in the next few months. >>