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

To: jim kelley who wrote (43087)	5/19/1998 10:43:00 AM
From: jbn3	Read Replies (3) \| Respond to of 176387

Michael Dell and Jim Cramer to appear on CNBC tomorrow morning. That should be fun. I'm guessing that tomorrow will be another 'up' day. 3.

To: jim kelley who wrote (43087)	5/22/1998 11:42:00 AM
From: Gabriel008	Read Replies (2) \| Respond to of 176387

Jim, just got back from a business trip & decided to do a post-mortem of Q1 results. Looks like DELL is firing on all cylinders as per usual. I would appreciate any thoughts on their performance. 1- $3.920 billion in Revenue represents 5% sequential growth over Q4 consistent with historical trends [7% in F98 & 6% in F97]. 2- 17th consecutive quarter of record revenue growth: IMO, consistency in results is worth a hefty premium. 3- Inventory turns of 46 times & has maintained approximately the same inventory over the past 2 years although revenues have grown over $7 billion in the same time frame. 4- Return on invested capital - 229% - 4 times the rate of the nearest competitor. 5- Revenue growth outpaced market growth in all market regions by 3 to 6 times: 50% growth in the Americas; 62% in Europe; and 35% in Asia. 6- $2500 ASP vs $2600 in Q4. DELL is continuing to demonstrate price leadership & is still applying enormous pressure on the competition. 7- 1.568 million units sold worldwide vs Dataquest estimate of 1.539 million units. IDC had no worldwide data published this quarter. 8- Product mix sales are continuing to trend higher for Portables & Enterprise vs Desktops. 9- Gross Margin at 22.27% - a slight increase over Q4 indicating any price reductions are being effectively offset by reductions in component costs & greater efficiencies in production. 10- Operating Income at 10.94% is increasing indicating a continual lowering of Operating Expenses as a percentage of sales. 11- Net income of 7.79% vs 7.63% in Q4. 12- 700 million fully diluted average weighted shares - a reduction of 6 million from last quarter.