Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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. -- Ignore unavailable to you. Want to Upgrade?

To: JRI who wrote (144117)	10/7/1999 10:24:00 PM
From: Sam Bose	Read Replies (1) \| Respond to of 176387

DELL Sees `No Major Disruption' From Taiwan Quake Austin, Texas, Oct. 7 (Bloomberg) -- Dell Computer Corp., the biggest direct-seller of personal computers, won't face any significant parts shortages from last month's earthquake in Taiwan, Chairman Michael Dell said. The company's 34-year-old founder said he just returned from Taiwan and was impressed with how quickly semiconductor and component manufacturers rebounded from the quake, which killed 2,100 people, injured 9,000 and caused widespread power outages across the island. ``We believe that we did get commitments from our vendors to support us,' Michael Dell told about 200 analysts and investors meeting in Austin, Texas. ``I don't believe the short-term environment will be one that has a major disruption to our business.' Determining the exact impact is difficult because it can take as many as 12 weeks for parts such as semiconductors to work through the production cycle, Dell said. However, he said he didn't see any need for analysts to change their earnings estimates. ``It's a non-issue,' said Ashok Kumar, an analyst with US Bancorp Piper Jaffray, who rates Dell a ``buy.' ``If these guys can't make their quarter, who can?' Analysts predict Dell will earn 20 cents a share when it reports fiscal-third quarter earnings on Nov. 11, the average estimate from First Call Corp. The company earned 14 cents in the year-earlier period. Dell rose 1 1/16 to 44 3/8 in trading of 31.6 million shares, making it the third-most active U.S. stock. The shares have gained 21 percent this year. Big Deal? Dell's comments contrast with a statement last week from Hewlett-Packard Co. Chief Executive Carly Fiorina. Fiorina cautioned that fiscal fourth-quarter sales at the world's No. 2 computer maker will be at the low end of forecasts of 10 percent to 13 percent growth because the quake shut down some suppliers. ``We are assured of some disruptions and delays in the PC supply chain,' Fiorina told analysts and investors on Friday. Dell said his company's size as one of the world's biggest PC makers gives it greater clout with supplier than its smaller rivals. ``Dell is a preferred customer of these suppliers and is in a wonderful position to exert pressure to ensure supply,' he said. The company's business appears to be ``much in demand' among component manufacturers, said Walter Winnitzki, an analyst with Hambrecht & Quist, who rates Dell a ``buy.' Some analysts had expressed concerned that the quake would hurt Dell's supply of notebook computers because its models are made in Taiwan. Michael Dell, however, said issues such as a shortage of LCD screens pose a greater concern. ``We are constrained more by LCDs than by an earthquake in Taiwan,' he said. The LCD shortage is likely to begin to ease next year as new plants begin operations, he said. If component shortages do crop up, Dell said his company will be better able to handle them because all Dell's computers are custom-built for customers who order them directly from the company. If one part isn't available, the company can offer an alternative. ``Our flexibility here is much, much greater than others,' he said. ``I'd be very surprised if we didn't come out of this a whole lot better than our competitors.'