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To: K. M. Strickler who wrote (31015)	2/25/1998 12:31:00 AM
From: Mr. Miller	Respond to of 176387

K.M. Here's the URL talking about the AT&T "defector": biz.yahoo.com I think you are right on the money with DELL's success, and it will surely continue. I believe that GTW is back on track and can do the same thing DELL has done over the past 16 months in the next 18-24 months. DELL has been ahead of GTW in revenues by four quarters until that third quarter debacle. The comparison of revenues and earnings are amazingly identical. What to do is look at quarters ended for DELL and then compare quarters ended for GTW four quarters previous, so q ended 1/97 for DELL would be compared to GTW quarter ended 3/98(hopefully), and quarter ended 10/96 would be compared to quarter ended 12/97 for GTW. Check post #1873 on yahoo message board for GTW: A comparison of DELL and GTW that I have spoken of: DELL.......................................Gateway Q(ended)....Revs(bil)...Earn(mil).........Q(ended)...Revs...Earn 4/94******.8******18************3/95***.8*38 7/94****.8******28************6/95***.8*34 10/94***.9******41************9/95***.9*41 1/95****1.0*****63************12/95**1.258 4/95****1.1*****50************3/96***1.150 7/95****1.2*****65************6/96***1.151 10/95***1.4*****75************9/96***1.260 1/96****1.5*****70************12/96**1.588 4/96****1.6*****82************3/97***1.467 7/96****1.7*****103***********6/97***1.456 10/96***2.0*****145***********9/97***1.5(107) 1/97****2.4*****???***********12/97**2.093 4/97****2.6*****198**********??????????????? 7/97****2.8*****214**********??????????????? 10/97***3.1*****248**********??????????????? 1/98****3.7*****285************??????????????? The similarity is scary isn't it? Of course history is no indicator of future performance, but up to the period ended 1/96 for DELL compared to 12/96 for GTW, these two companies were near exact in course of progress. Not in the same year, but 4 quarters lagging. I wonder how CPQ would stack up... The next three quarters following period ended 12/96 for GTW(1/96 for DELL)saw DELL continue growth while GTW somewhat stagnated(of course the reasons are mechanics of the specific year-GTW period was during the Asian flu(I believe DELL has done well, considering, through this period(fall'97)), while DELL's was in high flying BULL market). The GTW machine has come back on track(as hopefully Asia has recovered), but has lost a quarter in the neck and neck sequence. Notwithstanding earnings(which is of course very important), revenues for GTW for the quarter ended 12/97 were the same for DELL in the quarter ended 10/96. Hence, GTW is now 5 quarters lagging, and I expect this to continue going forward, placing GTW at revenues of $3.7 billion by quarter ended 3/99. It may be a longshot, but it may payoff more than DELL's % return over the next two years. Thanks. Miller