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

To: jim kelley who wrote (48010)	6/17/1998 9:18:00 PM
From: Techie	Read Replies (1) \| Respond to of 176387

A savory Preview of things to come.... Let's imagine what the analysts would say after the next report: Balance sheet remained strong, improving in absolute terms, with inventory and receivables down sequentially. Inventory remained 8 days and receivables at 30 days. The strong asset management allowed gross margins to expand, offsetting the effects of the lower sales levels. Unit shipments were disappointing, which management attributed to non-competitive pricing. However, more competitive pricing may have led to higher unit gains, but likely at the expense of gross margin. Perhaps overly conservative, but the disappointing Q3 units together with the cautious outlook will likely contribute to keeping investors on the sidelines in the near term. Pricing was also somewhat of a negative surprise with blended ASP's declining about 9% sequentially. At least a portion of the ASP decline could be attributed to a sharp decline in notebook pricing. Desktop ASP's declined about $200 seq., but well below average unit cost declines which fell $411 sequentially, partially due to lower component costs and partly due to improved asset management. The lower costs allowed desktop gross income per unit to expand. We anticipate further improvement going forward but at decelerating rates. We have reduced our estimates for the fourth quarter of 1998 and for 1999.... We have reduced our unit and ASP assumption. blah blah blah... Sounds familiar? Why don't you buz Chuz!