To: Knighty Tin who wrote (44225 ) 1/21/1999 5:38:00 PM From: Peter Singleton Read Replies (2) | Respond to of 132070
Michael, Earlie, What impact do the GTW results have on your belief the PC market has begun to slow sharply? FWIW, I think the economy is on shaky ground, and stocks, especially techs, are at insane valuations, but I don't see information here that would support the PC market slowdown hypothesis. Btw, Skeeter, MSFT's CFO always talks down subsequent quarters in earnings press releases and such .. from the press release:go2net.newsalert.com Gateway Reports Record Fourth Quarter Business Wire - January 21, 1999 17:21 NORTH SIOUX CITY, S.D.--(BUSINESS WIRE)--Jan. 21, 1999--Gateway today reported record sales of 1,151,000 PCs, a 35% increase from fourth quarter 1997; record sales of $2.31 billion and record earnings per diluted share of $0.81 for the fourth quarter ending December 31, 1998. ... Quarterly Sales Cross $2 Billion Mark For the First Time In Gateway History Fourth quarter revenue was $2.31 billion, up 17% from the $1.98 billion recorded a year ago. Gateway's record unit growth was due to strong sales across all geographic areas. The Americas region grew 34.5% in units and 15.9% in revenue over 1997's fourth quarter. Europe turned the corner this quarter with a 20.9% increase in units and a 1.6% increase in revenue compared to fourth quarter last year due to successful launches of Your:)Ware(SM) and Gateway Country(R) stores. Growth in Asia Pacific continued its momentum with an increase of 73.9% in units and an increase of 50.6% in revenues compared to the fourth quarter of 1997. Average unit prices (AUPs) decreased 14% to $2003 in the fourth quarter compared to $2326 last year and decreased 2% compared to the third quarter of 1998. ... Unit shipments for the year ended December 31, 1998, increased 37% to 3,541,000 units compared to 2,580,000 units shipped in 1997. Sales in 1998 increased 19% to $7.47 billion compared to $6.29 billion in 1997.