Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: hpeace who wrote (25692)	12/18/1997 10:15:00 PM
From: Meathead	Read Replies (1) \| Respond to of 176387

Yes, the derivitaves cost them a few million. They also got sued. The biggest part of the loss was the notebook problem. The writeoffs continued into 1994. It cost them a bundle. There were serious doubts whether or not they could re-enter or even survive. From the 94 10k The Company and its Chairman, Michael S. Dell, are defendants in nineteen lawsuits filed between May and November 1993, in the United States DistrictCourt for the Western District of Texas, Austin Division. Thomas J. Meredith,the Company's Chief Financial Officer, is also a defendant in seven of thelawsuits. Joel Kocher, Senior Vice President of the Company, is also a defendantin one of the lawsuits, but the plaintiffs have conditionally agreed to dismisshim. The suits have been consolidated, an amended and consolidated complaint hasbeen filed, and the plaintiffs have requested class certification for a class of persons who purchased or held the Company's common stock between February 24, 1993, and July 14, 1993. In general, the plaintiffs allege that the Company made overly optimistic forecasts about the Company's prospects without a reasonable basis and failed to disclose adverse material information about the Company's business (particularly with regard to problems in its notebook business) on a timely basis, The Company reported a net loss for 1994 of $35.8 million or $1.06 percommon share on consolidated net sales of $2.87 billion compared with net incomeof $101.6 million or $2.59 per common share on consolidated net sales of $2.01 billion for 1993. The Company's results for 1994 included pre-tax charges totaling $91.4 million associated with inventory writedowns and related costs; costs associated with delayed and canceled personal computer notebook projects; During the first half of 1994, the Company delayed and canceled certainnotebook development projects and reevaluated its probable future sales for thenotebook products then offered. The Company recorded more than $39.3 million ofcharges in the first half of 1994 due to the notebook inventory writedowns anddelayed and canceled notebook projects. The Company canceled its notebookproduct line in August, 1993 and sold its then remaining inventories ofnotebooks at significantly reduced prices. MEATHEAD