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To: Jim McMannis who wrote (97608)	1/26/2000 5:32:00 PM
From: Road Walker	Respond to of 186894

Dell Warns Results to Fall Short, Again ROUND ROCK, Texas (Reuters) - Dell Computer Corp. (NasdaqNM:DELL - news), the world's No. 2 personal computer maker, on Wednesday warned revenue and earnings would fall short of expectations for the second quarter in a row, amid parts shortages and a sales slowdown tied to Year 2000 fears. Dell said it expects revenue of about $6.7 billion for the fourth quarter ending January 28, up about 30 percent from the prior-year period, but well below its prior year growth rate in the high 30 percent range and a historic 50 percent plus rate. Earnings are expected to be about $430 million, or 16 cents per share, including a gain of about 1 cent per share from the sale of investments. The analysts' consensus prior to the warning had been for profits of 21 cents a share, Dell said. While some analysts had warned over the past two months of possible shortfalls by the Round Rock, Texas company, Dell cautioned that its higher rates of growth were unlikely to return in the year ahead, once Y2K issues subside. ''Appropriate financial goals for Dell in the new fiscal year would be annual revenue growth in the low 30-percent range, with net margins in the low to mid 7-percent range, Dell Chief Financial Officer Tom Meredith said in a statement. Net profit margins had previously topped 8 percent. The company said the primary causes of the latest shortfall were an inconsistent flow of computer chip components for use in its PCs and a slower-than-expected rebound in sales to corporate and institutional customers as companies slowed spending on new equipment in order to prevent Y2K glitches. Dell said the parts shortage caused $300 million in lost sales, primarily of newly introduced consumer products. The Y2K slowdown cost the company another $500 million in expected revenue. Dell will announce its full financial results on Feb. 10.

To: Jim McMannis who wrote (97608)	1/26/2000 5:39:00 PM
From: John F. Dowd	Read Replies (4) \| Respond to of 186894

Jim: This leak was outrageous. The SEC should look into this big time. DELL will be hounded by the class action boys and they may get hammered. This was terrible. It was bad for a lot of reasons. It really destroys confidence in the markets. MM's must have been pulling their bids big time because they took MSFT down 3 and 1/2 on 2/3's avg. volume. and INTC down 5 on avg. volume. The reason this happened i that they did not get the whole story. Despite the lower-than-expected outlook, Dell Computer said it still expects revenue from worldwide consumer and small-business segments to increase by more than 50% in the latest fourth quarter, compared with a year ago." Which is all that INTC and MSFT care about since DELL's earnings do not effect how many chips and O/S go out DELL's door. So this should be good news for MSFT and INTC. Sure they missed a half billion more in additional sales but the 50% yr to yr increase should assuage the concerns of DELL's 2 big suppliers. The sales missed in DELL's 4th qrtr. will slide into the next and since we are already in the next qrtr. for INTC and MSFT it should actually be bullish for INTC and MSFT This is a scary market. I think when they analyze the numbers we will see a nice rebound in INTC and MSFT tomorrow. JFD