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

To: Eric S. who wrote (31396)	2/27/1998 7:03:00 PM
From: Jeff Mills	Read Replies (3) \| Respond to of 176387

News just hit Dow Jones wires: DELL says it halted PC production for 3 days this week. ================ Dow Jones Newswires -- February 27, 1998 Dell Says It Halted PC Production For 3 Days This Week DALLAS (Dow Jones)--Dell Computer Corp. (DELL) halted production in its consumer desktop personal computer line for three days this week because engineers found a problem in a video component. Production has resumed and Dell will run the Austin, Texas, factory this weekend to catch up with demand, a spokesman said Friday. The company's factories are usually closed on weekends. The spokesman said the delay isn't expected to have a financial effect on Round Rock, Texas-based Dell. Consumer PCs account for about 10% of Dell's revenue. The company wouldn't disclose production, although analysts estimate it builds about 1,500 consumer PCs a day. Dell is the largest PC maker that deals directly with customers and builds systems only after they've been ordered. Its business model allows it to keep component inventories low, which reduces its expense if bad components are found but also exposes it to production delays. The trouble arose when engineers discovered video memory working improperly in about 1% of systems being produced with a video component card by STB Systems Inc. (STBI). Dell and STB engineers resolved the problem, the Dell spokesman said. A spokesman for STB, based in Richardson, Texas said he hadn't heard of the difficulty and couldn't immediately get details. A spokesman for Gateway 2000 Inc. (GTW), a North Sioux City, S.D., PC maker that also uses STB video cards, said it had experienced no difficulties with STB components recently. An operator at Dell's phone order center said the company was delivering consumer desktop PCs in 10 days. In advertising, the company says deliveries typically take seven to 10 days, although it cautions that component shortages can sometimes slow production and delivery. A list on Dell's Web site of products experiencing significant delivery delays shows only advanced servers, at four weeks. -By Evan Ramstad ==================