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

To: JRI who wrote (152094)	1/26/2000 4:38:00 PM
From: Lee	Respond to of 176387

John,..Re:.am surprised by the size of the miss DELL FOURTH-QUARTER REVENUE, EARNINGS WILL BE LOWER THAN EXPECTED; SUPPLY CONSTRAINTS, Y2K HELD BACK GROWTH BUSINESS EDITORS & HIGH-TECH WRITERS ROUND ROCK, TEXAS--(BUSINESS WIRE)--JAN. 26, -------------------------------------------------------------------------------- ROUND ROCK, Texas--(BUSINESS WIRE)--Jan. 26, 2000--Despite revenue that is again expected to rise two to three times faster than the rate of the worldwide computer systems market, Dell Computer Corporation (Nasdaq:DELL.O) announced today that it will report lower-than-anticipated revenue and earnings for the fourth fiscal quarter ending Jan. 28. The company said an inconsistent flow of key semiconductor components and a slower-than-expected rebound in sales to corporate and institutional customers related to the Y2K rollover were primary reasons for the shortfall. The company announces its full financial results on Feb. 10. Dell said it expects to report revenue of about $6.7 billion for the fourth quarter, which would be up 30 percent from the prior-year period. Unit volumes are expected to increase more than 30 percent on a fiscal-quarter basis, and 50 percent on a calendar-quarter basis, which is the way industry analysts report rankings. Earnings are expected to be about $430 million, or 16 cents per share, including a per-share gain of about 1-cent from the sale of investments. The consensus of analysts' earnings estimates for the quarter was 21 cents per share. For the full year, Dell expects to report revenue of more than $25 billion, which would be an increase of 38 percent over the prior year. Annual earnings are expected to be about $1.8 billion, or 68 cents per share, up 28 percent over prior-year earnings of 53 cents per share. Current-year per-share earnings exclude a previously announced 7-cent charge associated with the third-quarter acquisition of ConvergeNet Technologies Inc. Dell said that a significant factor behind the revised outlook was an uneven and constrained supply of semiconductor components during the quarter. This caused $300 million in lost sales, primarily of newly introduced consumer products. Revenue from the worldwide consumer and small-business segment is still expected to be more than 50 percent higher than the prior-year quarter, a growth rate of better than three times the level of Dell's nearest direct competitor. Additionally, corporate demand following the Y2K rollover was lower than anticipated, reducing expected revenue by about $500 million. The company nonetheless expects its global fourth-quarter sales to corporate and institutional accounts to increase more than 20 percent from the year-ago period, which the company believes is a multiple of the industry rate.