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

To: kemble s. matter who wrote (53684)	7/23/1998 9:50:00 PM
From: Patrick E.McDaniel	Read Replies (5) \| Respond to of 176387

TO ALL, PLEASE COMMENT ON THESE OBSERVATIONS ON THE GTW REPORT. GTW Q1 (for reference) 776,000 units shipped $2253/Unit 19.5% Gross Margin _________________________________________________ GTW Regional revenue info. 6% from Asia 9.4% from EMEA (which I am assuming is Europe only) _____ 15.4% from International __________________________________________________ 11.6% of revenues from portables __________________________________________________ Now GTW Q2 736,000 units shipped (GTW may have not declined if they had figured out what to do in Europe) $2200/Unit (a 2.35% decline) Good indicator for Dell! 20.6% Gross Margin (a 1.1% increase) Good indicator for Dell! __________________________________________________ GTW Regional info GTW messed up the numbers here to get sequential data but reported Asia up 33% over the prior year and Europe declined 22% over the prior year due to decline in units shipped and AUP. Maybe they should give up a Mad Cow in their advertising there! Asia didn't fall apart but GTW is in deep doo doo with Europe! Declining units compared to a year ago represents a terrible performance while Dell has been growing more in Europe than any other region. Expect Dell to have increased market share in Europe to the expense of GTW. Absent from either GTW quarterly report are comments about Central/South America. I believe it is to our advantage that the South Dakota school system doesn't put anything on their maps between Texas and Antartica! _______________________________________________ GTW had an increase in portables to 14% of revenues. This is good news as margins on portables are higher and considering Dell is numero uno (number one for those from South Dakota) in portable performance another good indicator. _______________________________________________ GTW did have additional SG&A costs to push the Under:)Ware ( not the real name but I don't feel I should advertise for them). From their comments this program was a success and should be into the future. I have the cost off the bottom line of 12.6 cents/share. _______________________________________________ GTW Comments by month: April was soft (Dell had this month in their last quarter) May was normal June was strong Dells current quarter includes May, June and July and should be stronger the farther out in the quarter. Therefore, Dell should do better than GTW simply due to timing of the quarter. ______________________________________________ In summary relative to Dell: 1.ASP declines were not as severe as may be expected. 2.GTW's performance in Europe was like a Ken Starr appearance at a DNC fundraiser! 3.GTW hasn't discovered Central/South America.(lets keep this our little secret) 4.Gross margins were trending up. 5.Portable sales are trending up. 6.Dell's timing in this quarter is building momentum and does not include the weakest quarter GTW had. 7.GTW does not comment on server sales.I did not see specific comments on the GTW report commenting on their server sales. I wonder why!!!! Dell has been growing server sales and thus improving margins. 8.Missing from the GTW report were comments on Internet sales. Can you wonder why? Please Comment,Pat P.S. Workstations??????????????Servers????????????????