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

To: rudedog who wrote (153492)	2/10/2000 5:27:00 PM
From: D.J.Smyth	Read Replies (2) \| Respond to of 176387

rude, It's a kick. Dell's Enterprise business grows 55% year over year, SUNW's at 26%. although SUNW owns the #1 spot, looks as if Dell is moving in to stay big time. Look at this: "In terms of volume, Dell accounted for more than 40 percent of worldwide industry server growth, in part as a result of demand from companies building out their Internet infrastructures" All those small "volume" buyers, who make up much of Dell's servers sales, tend to become larger volume buyers over time. Nevertheless, all those buyers lumped together made Dell the volume leader! Looking at the numbers; note that SG&A was up 1.5% over last quarter. The increase in SG&A (probably a result of increased buildout of TN, China, Brazil and new product lines) is higher than any other qtr. for the past two years. Dell added 4,500 additional personnel sequentially - that is a jump. They must be expecting "big" things. Without this increase in SG&A, Dell's earnings are $.19, nearly $.20. Dell was betting on higher revenue number to offset increase in SG&A? But, that increase would appear to be primarily a one time event if viewed as a percent of revenue over the past 2 years. They're building up to breakout sales. Increase in operating expenses: possibly one result of downtime shift from non-product availability (parts shortage)? Dell's non-core business is up from 8% to 16% year over year as a percent of revenue - that's a 100% growth rate as a percent of revenue. This growth in combination with the the weak Y2k helped contribute to the lowered earnings expectations. The ASP is actually up to $2250, up from $2100, sequentially - which would fit the rule that lack of supply helps increase, or stabilize, prices.