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To: Return to Sender who wrote (6901)	11/14/2002 8:30:26 PM
From: Return to Sender	Read Replies (1) \| Respond to of 95639

Cautious outlook knocks Dell shares Thursday November 14, 7:50 pm ET By Scott Morrison in San Francisco biz.yahoo.com Dell Computer stock fell 3 per cent in after-hours trading on Thursday despite market share gains that enabled it to meet third-quarter earnings projections and prompted predictions of stronger results for the current quarter. The fourth quarter projections met consensus estimates, but some analysts had hoped for a more bullish outlook from the world's biggest PC maker. Dell, which recently recaptured top spot from Hewlett-Packard, said it expected its fourth quarter shipments to grow 10 per cent sequentially - or 23 per cent from the year-ago period - but executives said they were not sure the industry would see "a particularly strong" fourth quarter. They said they still did not see signs that customers were prepared to buy new computers to upgrade old systems, a trend that would provide the industry with a much needed jolt. Revenue in the current three months was expected to increase to $9.7bn, or about 20 per cent year-on-year. The company said it expected to improve operating margins and post fourth-quarter earnings of 23 cents per share. For the third quarter ended November 1, Dell said it earned $561m, or 21 cents per share, on sales of $9.1bn. The computer maker said in early October that it expected to earn 21 cents per a share on sales of $9.1bn during the quarter. That compared with earnings of $429m, or 16 cents per share, on sales of $7.47bn during the same period last year. Michael Dell, company founder and chief executive, said its success reflected growing demand for PCs and servers built with industry-standard components. Dell's low cost manufacturing model and direct sales approach has enabled it to keep prices down and put pressure on struggling rivals. Dell said it posted a 28 per cent year-on-year rise in overall product shipments, compared with a 2 per cent increase among rivals. Dell's PC market share gains are in part due to its push into the US consumer market. The company, which made its mark among small- and medium-sized companies, said its third quarter shipments surged 51 per cent over the same period last year. Dell ended the quarter with $9.1bn in total cash and investments, up from $8.6bn in the previous three months. Shares rose 3 per cent to $30.94 in normal trading but gave up almost all of those gains following its earnings report.