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


To: kemble s. matter who wrote (158857)7/25/2000 10:27:05 PM
From: TigerPaw  Respond to of 176387
 
proof of that...

Aye, Aye, Capitan.

TP



To: kemble s. matter who wrote (158857)7/25/2000 10:35:26 PM
From: calgal  Read Replies (1) | Respond to of 176387
 
Hi Kemble! I did see that Merrill reiterated Dell a buy. You saw Dell. You heard Mikey give his talk. Compaq may have met their numbers. Dell will do well. Leigh

Dell Computer Reiterated Near-Term `Buy' at Merrill
By Sybil Carlson
Princeton, New Jersey, July 25 (Bloomberg Data) -- Dell Computer Corp. (DELL US) was reiterated near-term ``buy'' by analyst Steven M Fortuna at Merrill Lynch. The long-term rating was also reiterated ''buy.'' The 12-month target price is $63.00 per share.



To: kemble s. matter who wrote (158857)7/25/2000 10:46:01 PM
From: calgal  Respond to of 176387
 
"In a telephone interview, he said the company is looking to more aggressively protect its position as the world's largest provider of personal computers against Dell Computer Corp. (NasdaqNM:DELL - news), which last year took the lead in the U.S. market, and has been gaining on Compaq in global sales."

Tuesday July 25 9:07 PM ET
Compaq Posts Net Profit, Sales Rise

By Nicole Volpe

NEW YORK (Reuters) - Compaq Computer Corp. (NYSE:CPQ - news), the No. 1 personal computer maker, on Tuesday posted a second-quarter net profit versus a loss last year, meeting Wall Street expectations on strong sales of notebook computers and powerful Intel-based computers used to run Web sites.

The Houston-based company also returned its commercial personal computer sales unit to profitability ahead of schedule, and said it expects higher sales growth for the rest of the year.

The company reported net income of $387 million, or 22 cents per share, compared with a loss of $184 million, or 10 cents, in the year-earlier quarter. Revenues rose 8 percent to $10.1 billion.

Excluding $25 million in investment gains, earnings per diluted share were 21 cents in the 2000 second quarter.

Wall Street analysts on average had expected the company to earn 21 cents per share, according to First Call/Thomson Financial, which compiles brokerage estimates.

``We are pleased with our progress to date,'' Michael Capellas said in a statement. ``Industry standard revenue grew by 40 percent...while our commercial PC business returned to profitability an hour ahead of time.''

Shares were trading on Instinet at 28 after the earnings report, which came after the close. The shares had closed 11/16 higher at 27-7/16 on the New York Stock Exchange. The share price has stayed in a trading range in the 20s in recent months.

``It was a mixed quarter,'' said Gerard Klauer Mattison analyst David Bailey, saying the company did not perform well in storage and services, both considered quickly expanding markets with the explosion of business on the Web.

``IBM (NYSE:IBM - news) and Hewlett-Packard Co. (NYSE:HWP - news) articulated an e-commerce strategy over a year ago, and Compaq has just started to align themselves with an e-commerce strategy in services,'' he said.

Capellas said he expected a stronger second half, meeting financial targets set for the third and fourth quarters.

``We expect to deliver strong, double-digit revenue growth in the second half of the year,'' Capellas said.

In a telephone interview, he said the company is looking to more aggressively protect its position as the world's largest provider of personal computers against Dell Computer Corp. (NasdaqNM:DELL - news), which last year took the lead in the U.S. market, and has been gaining on Compaq in global sales.

``We said we would get our business model in line to achieve profitability at the expense of market share, and now that we have done that you will see us get a lot more aggressive on share,'' he said.

Capellas added that product designs were now simpler and higher margin, allowing for the company to compete with its more efficient rival.

Chief Financial Officer Jesse Greene said in a conference call the company expected to meet a revenue targets of $10.8 billion for the second quarter, which would be 17 percent growth over the same quarter the year before. He added that the company was comfortable with third-quarter earnings per share estimates of 29 cents, as well as analyst's estimates for full year profit and revenues.

The commercial personal computing group generated revenue of $3.3 billion, an increase of 3 percent year-over-year. The group returned to profitability in the second quarter -- a quarter ahead of schedule -- posting an operating profit of $62 million. That represents an improvement of $286 million over the second quarter 1999.

Commercial PC products, which include desktops for businesses and notebook computers, accounted for 33 percent of second-quarter revenue.

Enterprise computing, which includes servers, which manage networks of other computers, and storage, generated revenues of $3.4 billion, an increase of 9 percent over the second quarter a year ago. The group represented 34 percent of total second-quarter revenue.

The high-performance ProLiant server line showed 40 percent sales growth, on strong demand from online businesses. But the company's new GS line of Alpha servers fell short, selling only 50 units in the quarter. Capellas said they would not match the target for $1 billion in new sales in 2000 the company set when the servers were unveiled in May.

``We'll do what we projected in the second half but it won't make up for the second quarter,'' he said.

Global services sales were down, at $1.7 billion, a decrease of 4 percent year-over-year. That segment represented 17 percent of second-quarter sales.

Second-quarter gross margin, or gross profit expressed as a percentage of revenue, rose by 3 percentage points to 23.6 percent.

Sales of non-PC revenue -- including printers, Internet access and traffic, software, financing and warranty upgrades -- more than doubled year-over-year.

dailynews.yahoo.com



To: kemble s. matter who wrote (158857)7/25/2000 10:51:31 PM
From: calgal  Respond to of 176387
 
ON24/Briefing.com: Spotlight: Dell
Tuesday July 25, 11:33 am Eastern Time
Brought to you by ON24

biz.yahoo.com



To: kemble s. matter who wrote (158857)7/26/2000 9:22:16 AM
From: Patrick E.McDaniel  Respond to of 176387
 
Kemble, lots of shares of GTW trading this morning!

Do you think Drew knows about this?

:o)



To: kemble s. matter who wrote (158857)7/26/2000 12:32:23 PM
From: calgal  Read Replies (1) | Respond to of 176387
 
Dell to Unveil Indian Subsidiary as Part of Asia Expansion Plan

New Delhi, July 26 (Bloomberg) -- Dell Computer Corp., the No.1 direct seller of personal computers in the U.S., will unveil a wholly owned subsidiary in India as part of its expansion plan for the Asian region.

The company plans to hold a news conference in New Delhi tomorrow to announce the new unit and its strategy for selling computers in India.

Dell's India office and Internet infrastructure to take orders online will be based in the southern city of Bangalore. The company will not make computers in India but will import them from its facility in Penang, Malaysia, said a public relations executive for the company.

Dell will compete in India against companies such as HCL Infosystems Ltd., India's biggest computer maker, and the subsidiaries of Hewlett-Packard Co., Compaq Computer Corp., and IBM Corp., which make machines in India and have well established networks of distributors and resellers.

It could, however, be a good time to join the fray.

India's computer industry recorded its best performance in four years in the last financial year. Spending on computers and related goods such as printers jumped 30 percent to 165.4 billion rupees ($3.9 billion) in the year to March, according to IDC (India) Ltd., a subsidiary of U.S.-based market research firm IDC.

The market researcher expects the industry to grow at the same rate for the next few years.

From Bloomberg: Jul/26/2000 10:19 ET



To: kemble s. matter who wrote (158857)7/26/2000 5:06:30 PM
From: calgal  Read Replies (1) | Respond to of 176387
 
Compaq Remains Number One in Worldwide PC Market, Although Dell

Is Closing the
Gap, IDC Says

Strong Consumer Demand in the Far East Drives Global Growth



FRAMINGHAM, Mass., July 24 /PRNewswire/ -- Strong consumer demand in the Far East drove second-quarter 2000 year-on-year worldwide unit growth of 14.5%, according to preliminary estimates released today from IDC. Worldwide shipments rose to 30.1 million. This represents a seasonally expected sequential decline of 2.1%.
Markets in Asia/Pacific continued their strength as summer promotions in China and affinity marketing programs in Australia expanded consumer demand. High levels of consumer PC demand continued to swell in the Japanese marketplace, which accounted for the highest growth of all regions this quarter. Sales of portable PCs in Europe were very healthy and offset slow desktop and server demand throughout the region. Elsewhere, Latin America also exhibited higher than total market growth, benefiting from continued economic recovery in Brazil, Chile, and Argentina.

Worldwide growth far exceeded that of the United States in the second quarter of 2000. The U.S. market expanded a mild 7.2% over the year ago quarter to a unit shipment total of 11.7 million. "The U.S. commercial market began to recover from Y2K-related sluggishness," said Gabrielle Griffith, senior analyst of IDC's U.S. PC Tracking. "But corporate America is still slow to adopt Windows 2000 and seems to be taking a wait-and-see approach to upgrading hardware." Consumer demand was mild as buyers waited for back-to- school sales in the fall. Following the worldwide trend, U.S. portable shipments grew at a stronger rate than desktops.

Vendor Results

Unit gains worldwide were solid for most major vendors. PC vendor strategies focused on channel partnerships and building "outside the box" revenue. Vendors planned well for component supply and memory prices, and overall PC supply was not constrained by these factors.

In the United States, Dell retained its number-one position over Compaq and increased its market share. Dell enjoyed the pick-up in corporate demand as it continued to march forward with its business-to-business ecommerce strategy. The direct giant remained at number two behind Compaq in worldwide market share but managed to close the gap. Compaq's unit shipments declined in the United States and grew only 6% worldwide.

Hewlett-Packard continued to hold the number-three spot in the United States, boosted by its number-one position in U.S. retail desktops. The company had an impressive quarter worldwide and posted 34% growth year-on- year, allowing it to defend the number-three position worldwide against a recovering IBM. Showing better execution and recovery from product strategy and transition problems, IBM reappeared in the top five in the United States and knocked on HP's door from the number-four spot worldwide. Fujitsu Siemens has lost some momentum but retains its number-five ranking worldwide in a close race with NEC.


Table 1
Top 5 Vendors, U.S. PC Shipments, Second Quarter 2000 (Preliminary)
(Thousands of Units)

Q22000 Q2 2000 Market Q2 1999 Market Growth
Rank Vendor Shipments Share Shipments Share 2000/99

1 Dell 2,290 19.6% 1,809 16.6% 26.6%
2 Compaq 1,697 14.5% 1,798 16.5% -5.6%
3 Hewlett-
Packard 1,221 10.4% 841 7.7% 45.2%
4 Gateway 964 8.2% 845 7.7% 14.1%
5 IBM 714 6.1% 876 8.0% -18.5%

Others 4,818 41.2% 4,754 43.5% 1.3%

All Vendors 11,704 100.0% 10,923 100.0% 7.2%

-- Vendor shipments are branded shipments and exclude OEM sales for
all vendors and represent shipments to distribution channels or direct
to end users.
-- Data for all vendors are reported for calendar periods.
-- Data for Compaq includes shipments for Compaq, Digital Equipment and
Tandem.
Source: IDC, 2000

Table 2
Top 5 Vendors, Worldwide PC Shipments, Second Quarter 2000 (Preliminary)
(Thousands of Units)

Q2 2000 Q2 2000 Market Q2 1999 Market Growth
Rank Vendor Shipments Share Shipments Share 2000/99

1 Compaq 3,987 13.2% 3,758 14.3% 6.1%
2 Dell 3,454 11.5% 2,825 10.7% 22.3%
3 Hewlett-
Packard 2,255 7.5% 1,678 6.4% 34.4%
4 IBM 2,247 7.5% 2,344 8.9% -4.1%
5 Fujitsu
Siemens 1,388 4.6% 1,252 4.8% 10.9%

Others 16,769 55.7% 14,429 54.9% 16.2%

All Vendors 30,100 100.0% 26,286 100.0% 14.5%

-- Vendor shipments are branded shipments and exclude OEM sales for all
vendors and represent shipments to distribution channels or direct to
end users.
-- Data for all vendors are reported for calendar periods.

-- Data for Compaq includes shipments for Compaq, Digital Equipment, and
Tandem.
-- Data for Fujitsu Siemens includes shipments for Fujitsu and Siemens.

Source: IDC, 2000

About IDC


IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.

All product and company names may be trademarks or registered trademarks of their respective holders.

SOURCE IDC

-0- 07/24/2000

/CONTACT: Bruce Stephen, 508-935-4269, bstephen@idc.com, or Gabrielle Griffith, 770-279-0155, ggriffith@idc.com, both of IDC/

/Company News On-Call: prnewswire.com or fax, 800-758-5804, ext. 113987/

/Web site: idc.com

CO: IDC; IDG ST: Massachusetts IN: CPR MLM SU:


quote.bloomberg.com



To: kemble s. matter who wrote (158857)7/26/2000 5:12:34 PM
From: calgal  Respond to of 176387
 
"Dell grew market share and kept its earnings, but Compaq failed miserably when it sacrificed profits for market share."

July 26, 2000 7:17am

Commentary: Compaq wins credibility back, now it's time to grow

By Larry Dignan ZDII


It took a year, but Compaq CEO Michael Capellas has won the company's credibility back by doing the basics. Now, he'll have to stick his neck out a bit more to get Wall Street buzzing.

In what amounted to his one-year anniversary, Capellas was pleased to announce that Compaq Computer (NYSE: CPQ) at least met Wall Street estimates for three consecutive quarters.


For that feat, Capellas deserves a few kudos. A year ago, Compaq put up second quarter results that could be summed up in one word -- debacle. The company laid off 8,000 people and reported a loss as costs ballooned. Credibility and Compaq were two words that didn't go together.

What a difference a year makes. Compaq met estimates Tuesday night with a profit of $387 million, or 21 cents a share, as sales were up 8 percent to $10.1 billion. Capellas said he expects double-digit sales growth in the second half.

"Clearly we have some work to do, but momentum is building for a strong second half," he said on an analyst conference call. "We're in a better position than ever."

Capellas has delivered on what he said he'd do with Compaq -- stabilize the company and deliver measurable results. Capellas said a year ago the company would cut $1.5 billion in operating expenses, boost gross margins, return the PC business to profitability, accelerate growth and communicate with investors. He has delivered.

For that, Capellas gets a solid "B" on his report card. Capellas hasn't wowed anyone, but he's starting to win credibility points on Wall Street. "He deserves credit for putting the company on course," said SG Cowen analyst Richard Chu.

Chu's not alone. Many analysts give Capellas credit for Compaq's turnaround. But they also note that Compaq's chief has set conservative targets and merely accomplished the basic blocking and tackling. "He had to do that to build credibility," said Chu. "Now when he does get aggressive, he'll be believable."

Capellas' time to get aggressive is now.

If year one was about credibility, Capellas' second year on the job will be about regaining market share and growing the company.

Compaq is projecting double-digit revenue growth in the second half. Officials said the company is comfortable with third quarter revenue of $10.8 billion and consensus estimates calling for a profit of 29 cents a share.

Compaq's chief said the company will be announcing new products and plans to be "much more aggressive" about defining itself and "refocusing on who we are." Simply put, Compaq wants to drive market share gains. It's tired of losing market share and mind share to the likes of Dell Computer (Nasdaq: DELL) and Hewlett-Packard (NYSE: HWP), which has been defining itself for the last year.

The company clearly has some work to do. Compaq's enterprise unit was led by sales of its ProLiant servers, which basically fueled a 9 percent revenue gain. Aside from ProLiant sales, results were spotty. Sales of Compaq's GS line of Alpha servers fell 13 percent in the quarter, and revenue from the company's storage products were flat. Services revenue fell 4 percent from a year ago.

On the commercial PC side of the business, Compaq said the unit was profitable courtesy of its iPAQ line of Net appliances. Even so, sales were up a meager 3 percent. Things were rosy for the consumer PC business, which grew 32 percent in the quarter and now enters a strong back-to-school sales season.

Analysts said Compaq's business divisions present a mixed picture. If Compaq can get all of them firing, it'll be able to grow market share. The real trick is to grow share without diminishing profits. Dell grew market share and kept its earnings, but Compaq failed miserably when it sacrificed profits for market share.

Capellas said Compaq won't make the same mistakes twice, but the company's turnaround so far has benefited from a benign pricing environment. If a price war erupts, Compaq will have to choose between market share and profits. Those concerns may be why management isn't telling analysts to boost their expectations yet.

"We have to profitably drive for growth," said Capellas. "We can get both share and profits."

If Capellas meets that goal, he may just bring home an "A" next year.

zdii.com