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: Alohal who wrote (144906)	10/18/1999 6:30:00 PM
From: Sonny McWilliams	Respond to of 176387

dailynews.yahoo.com

To: Alohal who wrote (144906)	10/18/1999 6:32:00 PM
From: Alohal	Read Replies (1) \| Respond to of 176387

Increase in memory chip prices after Taiwan quake to tarnish earnings October 18, 1999: 6:10 p.m. ET NEW YORK (CNNfn) - Dell Computer Corp. warned Monday that an increase in computer memory chip prices are likely to affect its third-quarter financial results. Dell (DELL) officials recently told analysts that its business should remain strong in the wake of last month's earthquake in Taiwan, which knocked the region's chip foundries out of commission for about two weeks. In a statement released after markets closed Monday, however, the company said random-access memory chip prices had increased as much as 25 percent amid a shortage of components. In a brief statement, Dell said the price increase "would be felt on third-quarter operating margins." The company did not provide specific forecasts for operating profit or revenue. Analysts polled by First Call had expected Dell to earn 20 cents a share in the third quarter. Dell shares fell 1-1/2 to close at 41-5/16 prior to the warning. Its shares plunged to 37-7/8 in after-hours trade. "We are managing the memory situation carefully and are working to offset the cost increases with efficiencies in other parts of our business," said Thomas J. Meredith, Dell's chief financial officer. "We are also taking actions to reduce overall memory consumption, including advertising system configurations with lower amounts of base memory." Recently, BancBoston Robertson Stephens analyst Dan Niles downgraded his rating on Dell's stock to "long-term attractive" from "buy," anticipating slower-than-expected growth because of the Taiwan earthquake. Dell is the latest technology firm to feel the effects of the Taiwan earthquake. Compaq Computer Corp. (CPQ), Hewlett-Packard Co. (HWP) and Advanced Micro Devices Inc. (AMD) have all reported problems in the aftermath of the earthquake. cnnfn.com Alohal