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

To: Chuzzlewit who wrote (109390)	3/13/1999 1:27:00 PM
From: Gabriel008	Read Replies (1) \| Respond to of 176387

Chuzzlewit, the fee was mentioned in the text of the IBM/DELL deal. Although I didn't make much of it at the time I learned via reading subsequent articles that the cross licensing deal between DELL and IBM could or would eliminate a 1% royalty charge that DELL currently pays on every PC it sells. Here's one such article I picked up last week from the street.Com. written by Jim seymour on March 8; 'By the way, one of those interesting factoids I spoke of was buried deep in the Dell-IBM announcement. In a cross-licensing arrangement, Dell will get access to IBM's patent portfolio at sharply lower rates than Dell has been paying. By one estimate, Dell could save 1% of the selling price of each of its computers, thanks to reduced IBM royalties.' If true, this would amount to approximately $23.50 per PC sold or $51.7 million in incremental profit before tax based on Q4's results. On an EPS basis this would have translated to an incremental 2.6 cents per share. Regards, Gabriel