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

To: D. Swiss who wrote (157431)	5/30/2000 3:47:00 PM
From: Gabriel008	Read Replies (4) \| Respond to of 176387

Drew, I'm back and finally had a chance to analyze their report. Here's my postmortem; - IDC reported unit sales volume of 3.2 million units and DELL's actual was 3.165 million. Again we see that the 1 month difference in reporting periods between DELL and IDC is irrelevant. - DELL's ASP of $2300 was up a whopping $276 from last quarter. This is what saved DELL's bacon and we should see a similar ASP in the next quarter. - DELL's GP was 20.49% vs 19.20% last quarter thanks to the higher ASP and reduced component price pressures. We should see a continuation of this trend next quarter. In fact, GP next quarter should be up to 21.5%- 22.0% as it will reflect the April GP levels. - Opex was as expected - non-operating income continued to increase - up to $125 million this quarter. - tax rate back to 30% from 28.6% last quarter - fully diluted average weighted shares up by 6 million shares to 2.737 billion. This is the second consecutive quarter this number has increased reflecting the fact that DELL is not buying back sufficient shares in the market to offset employees exercising stock options. They are continuing to hoard their cash. In my view they will need to grow their unit volume to approximately 3.3 million units or 4% next quarter in order to hit 21 cents. This may be a stretch given their -6% sequential unit volume growth this quarter. I suspect that 20 cents is very doable, however. regards, gabriel