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Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (1439)	7/22/2002 11:04:52 AM
From: MeDroogies	Respond to of 4345

I remember saying that I wanted to go short the Naz about 4 weeks ago and somebody responded that must be a sure sign we were at a bottom....LOL. I agree we're NEAR a bottom. And I didn't go short. Call me a wuss. I never take my own best advice.

To: Elwood P. Dowd who wrote (1439)	7/22/2002 11:42:17 AM
From: Night Writer	Respond to of 4345

Ink sales boost Lexmark quarterly profits (Adds company comment from conference call in paragraphs 6, 8-9, 11, updates stock activity) LEXINGTON, Ky., July 22 (Reuters) - No. 2 U.S. computer printer maker Lexmark International Inc. <LXK.N> on Monday reported a small and unexpected rise in second-quarter earnings, fueled by robust sales of ink for its laser and inkjet devices. Lexington, Kentucky-based Lexmark, second in the printer market, after leader Hewlett-Packard Co. <HPQ.N>, posted net income of $89.1 million, or 67 cents a share, compared with $87.1 million, or 65 cents per share, one year ago. Most Wall Street analysts expected lower earnings with a consensus of 61 cents a share. Estimates were ranging from 58 cents to 65 cents, according to Thomson First Call. Revenue rose to $1.06 billion from $980.1 million a year earlier. Sales of printer supplies -- primarily replacement ink -- rose 18 percent to $566 million, representing 53 percent of Lexmark's total. Printer sales grew by 9 percent. The company expects continued earnings growth in the third quarter. But it remains cautious due to weakness in consumer markets, and further slumping in the information technology industry, where companies have streamlined spending plans. "The market continues to be weak, and we expect to see some channel inventory shrinkage on the consumer side," Gary Morin, Lexmark's chief financial officer, said on a conference call with analysts. Lexmark sees third-quarter revenue growth at a rate in the low- to mid-single digits, and forecast earnings per share of 58 cents to 68 cents compared with 52 cents a share in the third-quarter 2001. Wall Street's analysts estimated a range of 62 cents to 69 cents a share, according to First Call. Chief executive Paul Curlander shook off analysts' repeated questions regarding Dell Computer Corp.<DELL.O>, which has voiced its interest in entering the printer market. Many analysts speculated that Dell might try to partner with Lexmark. "Only Dell knows what Dell's strategy is relative to entry into the business," he said. "Our strategy is to grow our businesses through Lexmark-branded product. We are not dependent on OEM deals to grow our business." Original Equipment Manufacturing, or OEM, deals occur when a manufacturer sells product through a partner, often with that partner's brand name applied to the product. Lexmark's OEM business was cut back by the recently completed merger of Hewlett-Packard and Compaq, which was a Lexmark partner. "We are certainly interested in OEM deals, although we are not counting on them for growth," he said. Shares of Lexmark edged up 40 cents to $46.65 this morning on the New York Stock Exchange. On the year, the stock is down about 20 percent, but has significantly outperformed that of rival Hewlett-Packard. ((-- Franklin Paul, New York Technology Desk, 646-223-6195)) REUTERS * end of story *