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

To: Dr. David Gleitman who wrote (49889)	2/26/1999 10:51:00 AM
From: Tomcat	Read Replies (3) \| Respond to of 97611

Back end loaded means that most of CPQ sales for the quarter will be in March. This is the way it always has been. Also, most customers have probably been reading Intel's crap on how great Pentium III is going to be. So they are waiting until March to buy.

To: Dr. David Gleitman who wrote (49889)	2/26/1999 10:56:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

Hi Dr. Gleitman: Dr. Vic here. "Backend loading" means that a large percentage of the sales for this quarter will be shipped at the end of the quarter; that the shipping is not even month by month. January, apparently was low (as it always is). It is just that a lot of people thought that this January would be different because of carry over of demand from December and becasue of the heavier than expected demand that is expected for YK2 complance. (Rudedog even suggested that CPQ did so well in the December quarter that it carried over a few days of Decemebr sales into January to help out the first quarter). Analysts don't like backend loading because they are not able to keep a tally on the actual revenues month by month. Backend loading raises the risk that a week or ten days of sales will slip and not show up in this quarters figures. Backloading is not channel stuffing - it is the opposite.