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

To: rudedog who wrote (53942)	3/18/1999 2:00:00 PM
From: Lynn	Read Replies (1) \| Respond to of 97611

Going with your posting, Rudedog, CPQ ended '98 with, "a net deferred tax asset of $2.9 billion [annual report p. 45]." I should think using some of this in the 1Q would add to CPQ's bottom line. Lynn

To: rudedog who wrote (53942)	3/18/1999 2:51:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

rudedog: Of that $10 billion original target, Mason had already conceded a reduction of $200 million in his talk with Credit Suisse and attributed the potential hit to the Brazil devaluation. March has 31 days 4.3 weeks - so your analysis is still a bit generous on Kumar's estimates. BTW does CPQ manufacture and ship 7 x 24 in the US during current overtime schedules?

To: rudedog who wrote (53942)	3/18/1999 2:55:00 PM
From: jim kelley	Read Replies (2) \| Respond to of 97611

Dog, I am flattered but...... I have not estimated CPQ earnings at 20 cents this quarter. So Kumar is not getting his number from me. CPQ's financial statements are silly putty with all the in process technology writeoffs, deferred taxes, receivables and inventory issues. But I do not think they will post a 20 cent number. 29-31 is probably closer to what will happen. It is really up to CPQ management to decide what they are going to put up for the quarter- assuming the channel will allow stuffing. <g>

To: rudedog who wrote (53942)	3/19/1999 5:10:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

rudedog: "it has traditionally been lower than 4Q" 4Q is reported as a nominal $10.8 billion, so the original $10 billion 1Q estimate nominally honoured that rule. I was wondering whether the potential $200+ million reduction in the value of receivables from Brazil due to devaluation (as announced by Mason to Credit Suisse First Boston), reduces the top line revenue figures for the quarter, by that amount, or whether it will be treated as a one-time charge, leaving the gross revenues figure intact. I am not clear whether Mason intended his comment about a potential shortfall from devaluation to apply only to the receivables from the 4Q or whether it applied, in part, to COMPAQ estimates for Brazil revenues for 1Q.