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

To: Kirk © who wrote (7574)	4/8/2002 1:37:10 PM
From: Arrow Hd.	Read Replies (1) \| Respond to of 8218

Kirk, thanks for the post. The OEM business weakness is not surprising considering that their customer set is all tech based but the loss is surprising since an OEM P&L for a company who is using the products that they are OEMing allows the R&D expense, among other things, to be allocated to the IBM products allowing for a robust margin on the OEM side, if this is what the company chooses to do. The loss would indicate a fully apportioned methodology which, if you assume there is no double counting, allows for better margins on the hardware side. This is an example of why it is impossible to sort some of this stuff out.