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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Judith Feder who wrote (29361)	7/16/1998 7:34:00 PM
From: rudedog	Respond to of 97611

I think the $1.1B revenue number is pretty high, given that DEC was doing a little better than $3B a quarter before the merger (although 2Q was traditionally the weakest Q as it is for all these guys). Given that we had only about 25% of the Q to claim I would have thought a revenue contribution number like $600M was closer to the mark. If DEC really did $1.1B, they are kicking some serious tail at an annual run rate of $19B and we ought to see a great 3Q (since CPQ is looking strong on traditional lines going into Fall). If the numbers were anything like that EP and Earl would have been trumpeting it from the rooftops. I would have expected DEC to show maybe $180M profit for the whole Q based on their 1Q numbers, which included a 1-time windfall for the sale of assets to cabletron. That would have put their profit contribution at maybe $45M. I think these P-J guys are just not swift enough to see what's happening.