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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Andreas who wrote (90251)	3/14/2001 10:34:33 AM
From: Rossignol	Read Replies (2) \| Respond to of 97611

Andreas, that may be true for PC shipments but not for enterprise. About the only thing they have a lock on is the sales into their channels, but that's hardly the profit outlook. Now that enterprise sales contribute so much more to bottom line, it's difficult to extrapolate because one or two big deals can make all the difference. That doesn't lend itself to any statistics and is therefore difficult to predict. In slow quarters like this one, the buyers will wait to the last possible moment to milk their best possible deal, ie discount, from the sales person.

To: Andreas who wrote (90251)	3/14/2001 11:08:10 AM
From: profile_14	Read Replies (1) \| Respond to of 97611

Andreas, they may extrapolate, but why risk further damage when they have to make 19 cents this quarter. Last quarter they made 30 cents. 90% of profits are from high end servers. RadioShack says PC sales were up YOY, and servers are sold worldwide. Remember the slowdown is in the US. Also, they have been signing deals like crazy, possibly pulling some revenues into this quarter. IR also said that they completed all of the head count reductions that had been announced over the past two years, namely the DEC reorg and the restructuring reorg. IR mentioned that this year we will see Compaq shift from a focus on operating expenses to a focus to margins. Stay tuned.