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Technology Stocks : ICO (Inacom) LeadingTech Mgmt Services Co -- Ignore unavailable to you. Want to Upgrade?

To: double-plus-good who wrote (233)	7/15/1999 7:39:00 PM
From: Douglas V. Fant	Respond to of 274

++Good, Gross margins are indeed lower, but they include special charges to inventory writeoffs and the Vanstar acquisition. My guess is that these writeoffs "cleared the air" in terms of profit margins. Toss in inclreasing cash flows from new contracts and this should helkp boostmargins back to usual levels is what I am gamblng.... From ICO's most recent SEC Filing: (1) Gross margin includes the impact of $86.1 in unusual charges, of which $46.5 million is in products and $39.6 million is in services. Earnings (loss) before distributions on convertible preferred securities of trust includes the impact of $139.6 million after tax in restructuring and unusual charges, of which $101.7 million is in products and $37.9 million is in services. The following table sets forth for the indicated periods the gross margin percentage of the two operating segments and the consolidated gross margin percentage of the Company. THIRTEEN WEEKS ENDED ---------------------------- MARCH 27, MARCH 28, 1999 (1) 1998 ------------- ------------- Gross margin: Products............................................................. 3.1% 6.8% Services............................................................. 14.2 40.0 Consolidated gross margin.......................................... 4.8% 10.9% (1) Gross margin includes the impact of $86.1 in unusual charges.

To: double-plus-good who wrote (233)	7/16/1999 12:32:00 PM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 274

++Good, Mark two more major contracts for ICO: by: Profiler99 (32/M/CA) Inacom Teams with HP and Compaq to Win Outsourcing Deals Integrated Distribution Sways Rockwell and Nike By Craig Zarley Omaha Computer Reseller News 4:49 PM EST Thurs., July 15, 1999 crn.com Inacom Corp. was the big winner this week in two integrated distribution pacts at Nike Inc. and Rockwell International Corp. Robert Schultz, Inacom's group executive for Inacom Information Systems, said the contracts illustrate how the "co-direct strategy" between the vendors and the channel is winning more outsourcing deals. Hewlett-Packard Co. was the prime contractor in the Rockwell deal for Intel-based systems valued at more than $100 million over the course of the three-year contract, HP said. Inacom will handle procurement services for Intel-based products as well as moves, adds and changes at Rockwell, Schultz said. Rockwell was a longstanding HP enterprise account and HP brought Inacom into the deal for PC procurement and configuration services, he noted. Inacom is now in the process of establishing electronic links for product procurement services with Rockwell, Schultz said. Products that will be deployed to Rockwell facilities on a global basis include HP Vectra desktops, OmniBook notebooks, Kayak workstations and NetServer PC servers. At Nike, however, Inacom affiliate CTR Business Systems in Portland, Ore., had been the incumbent reseller and Inacom partnered with Compaq when the vendor was selected as Nike's global outsourcing service provider. Inacom acquired CTR's PC hardware and systems engineering division earlier this month. Nike and Compaq did not disclose terms of the multiyear outsourcing deal. However, sources close to the deal said it was a three-year contract valued at close to $30 million. The first phase of the contract calls for Compaq to deliver 4,700 Deskpro EN, Armada 7400 and Workstation SP 700 units to Nike facilities in more than 35 countries over the next six months, Compaq said. Inacom's outsourcing partnership deals with HP and Compaq come on the heels of a $42 million, five-year technology services deal it won earlier in the week with Blue Cross/Blue Shield of Massachusetts. In that deal, Inacom will be "the single point of contact" for professional services migration, network monitoring, Y2K upgrades and life-cycle management at the health insurer, said Schultz.