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Non-Tech : Ingram Micro -- Ignore unavailable to you. Want to Upgrade?

To: Reseller who wrote (351)	11/3/1999 2:11:00 AM
From: Dale Stempson	Read Replies (1) \| Respond to of 576

Reseller, it's nice to see IM have some back to back positive days. Your timing is looking good. Perhaps we're establishing the bottom here (although I could do without the obligatory retest). I guess it's time to begin looking a little more closely at the Q4 holiday season and Y2K. A couple of thoughts. The holiday season: Q4 has traditionally been good at IM with EPS sequential growth over Q3 averaging about 50%. This year it wouldn't be nearly enough to meet consensus estimates. We're going to have to do better in Europe (I'm hoping the difficulties at CHS will help there). Margins also need improvement (maybe some price increases to offset the rebates and incentives will be passed on). Management needs to get back on track (the first step was recognizing they were distracted. Perhaps they'll now be able to improve their focus). Internet sales may provide some help. Expectations are for huge growth, and with IM's domination as the back-end supplier for net resellers, we could enjoy the benefits. In addition, IM is the largest reseller to the retail channel which will be a positive as PC demand is reported to be very strong Y2K: It appears that some of the larger corporations are slowing down purchases, which should impact IM. Smaller companies are a wild card. From what I can gather, there is a large portion of this group that has just recently begun seriously addressing Y2K. I wouldn't be surprised to see these folks actually increase their spending during Q4 to ensure compliance. I believe this procrastination is also evident with the average PC user. I wonder how many folks out there will solve their Y2K concerns by simply using Christmas as an opportunity to purchase a new PC? When all is said and done, perhaps the certain impact of Y2K will not be visible because of offsetting revenue pluses and minuses. Regards - Dale