Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mohan Marette who wrote (80158)	11/13/1998 10:59:00 PM
From: jim kelley	Respond to of 176387

Mohan, A lot of people would like to drag DELL into the consumer PC fracas at the low end of the market. These people are DELL's competitors. It would divide the resources of the company.

To: Mohan Marette who wrote (80158)	11/13/1998 11:08:00 PM
From: Dell-icious	Read Replies (3) \| Respond to of 176387

DELL conference call summary: finally got around to listening. Unfortunately they didn't include the Q&A in the replay. Dell-icious Tom Meredith, CFO Highlights: Record Q: superiority of direct model 19th consecutive Q of revenue growth 15th consecutive Q of 40+% year over year revenue growth Worldwide #1 in profitiablity, #1 in revenue and unit growth, asset management. Grew 3 times faster than nearest competitor 1/3 of total industry growth. Revenues 4.818 billion, 51% over 3Q 98. over 5 times industry Earnings 28 cents, up 65% over 3Q 98. more than any system company in industry 190% ROIC., best in PC industry, more than 3 times nearest competitor 586 million cash flow from operations 2.8 billion cash and marketable securities 18 million shares repurchased, total 360 million of 500 million share program Believe it is good use of cash #2 in worldwide unit market share, fastest growth in top 10 Product leadership, cost and service. Internet revenue more than tripled to 10 million a day 3.7 billion annual rate 20% of business on internet, well on way to 50% goal Quarterly performance: Revenue growth: 51% overall, 11% seq. Americas revenue 46% over Q3 98, 13% seq. seasonal strength in government. consumer business grew 65% med-large business grew 38%, in line with 40% growth YTD #1 PC provider to US commercial sites with more than 500 employees, above CPQ for first time, according to ZD Market Intelligence. Higher Y2K spending European revenue 68% over Q3 98, 9% seq 7 countries over 85% 4 times industry, #2 in market share in Europe Asia revenue 49% vs Q3 98, compared to overall industry 2% Xiamen China plant opened. Strong adoption of direct model in PRC Enterprise systems: 104% over Q3 98, 14% of revenues. 8th consecutive quarter of 100%+ growth Gained 6 percentage points marketshare in US, #2 Worldwide closing in on #3. Workstations #2 worldwide in NT space Storage: Introduced Powervault, NTAP alliance Notebook revenue 93% over Q3 98, growth more than 11 times market in Q3 Introduced Inspiron 7000, best portable ever, Inspiron 3500. Desktop: 37% growth. #2 in US, Europe and worldwide 90% of desktops sold are 350Mhz PII or higher ASP : 2400. higher end mix Unit shipments up 66% over Q3 98, more than 5 times industry 22.5% margins, slight decline from 22.7% in Q2 11.4% operating expenses, slight decline Net margins steady at 8% Large room for improvement in ROIC. Can improve receivables management. Inventory down to 7 days, vs 8 days in Q2, 11 in Q3 98 Cash conversion cycle improved to -9 days Demand outlook: overall industry very healthy, just as bullish as before Q3. Strong Q typically for DELL, seq revenue growth low double digits strength in US corporate and consumer, though down in government (seasonal) good momentum no projections, but incorporate historical patterns into thinking 1) transition business to internet reduced cycle times from customer decision to product delivery 2) continuous flow manufacturing retrofit plants around the world 3) mix towards notebooks, servers, enterprise storage. 36%. lot more to go Negatives: 1) penetration in emerging markets Brazil. goals: rapid share gains, not near term margins 2) manufacturing capacity increase 3) quick in passing cost reductions gross margins may trend down long term along with operating expenses. net margins will stay around 8% in Q4 trend down a bit next year to maintain top line momentum Key initiatives: Goal: Improve overall customer experience, while lowering cost for for customers and DELL 1) Internet pure extension of direct model. Over 8500 premier pages Shortening cycle time between customer decision and product delivery online orders 40% fewer order status calls, also 12-15% fewer support calls. Linking supply chains to customers. 2) Transition to continuous flow manufacturing. China facility operational, Austin enterprise facility opens tomorrow. Broke ground in Ireland. 3) Service and reliability. Only vendor for PC Magazine award for desktops and notebooks, according to 17000 readers choice survey 4) Continues to build brand, #1 corporate desktop. Building barriers to entry.

To: Mohan Marette who wrote (80158)	11/13/1998 11:29:00 PM
From: Naggrachi	Read Replies (1) \| Respond to of 176387

<<This question does not apply to Compaq's management.<vbg>>> Did anyone catch NBR interview with Dell? When asked about CPQ, he replied that CPQ has tried the direct model almost 7 years ago. And he saw many conflicts that would arise out of their present situation that he didn't see much success when the dust settles. The above is a recollection and not the exact wording. The SquawkBox interview didn't go that well, IMO. Dell seemed distracted and caught off guard, at times he had to THINK before answering. Wondered if activity taking place around him distracted him or he was having difcullty hearing the questions, since the interview was set up via satelite. Did anyone else saw the interview in the same light? Zead