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

To: BGR who wrote (99797)	2/15/1999 7:48:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Sure, using the nefarious and underhanded sleight of hand theory, a company realizes that they are going to have problems coming up with expected revenues for the quarter. So they go to several large potential buyers and say, "Boy have we got a deal for you! If you take immediate delivery of those 10,000 desktops you were going to buy next quarter we'll take an extra 10% off the price." Result: revenue figures look great but margins drop. Now this kind of thing has been going on in the networking hardware business for so long that it has become normal business. If you want a better buy wait till the end of the quarter. In that case you wouldn't see much a decrease (if any) in gross margins. But the kind of thing Burke is talking about would certainly result in such a decrease. TTFN, CTC