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

To: JRI who wrote (137579)	7/24/1999 5:36:00 PM
From: Gabriel008	Respond to of 176387

John, your numbers are real close to mine on the top line - units 2766 [exactly reported by IDC], ASP $2200, Revenue $6.085b. It's on the bottom line we differ. I assume that Gross Profit, not Net Profit, will remain constant at 21.5%. I also assume, based on historical patterns, that Operating Expenses will come in at $620m; Operating Income will come in at $688m; Income BT will come in at $708m; and Income AT will come in at $496M. Using Average Weighted Shares of 2.725B [down from 2.738B in Q1] we arrive at $0.1820 per share. The only area I feel that can move us from this $0.182 to the $0.170 range is ASP. I really don't feel comfortable with this number since I don't know what DELL had to do to bring in the numbers. However, if Michael DELL stays true to form and doesn't overly sacrifice margin for market share $0.18 is a good bet. Regards, Gabriel