Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: rudedog who wrote (56709)	4/10/1999 12:57:00 PM
From: Roads End	Read Replies (1) \| Respond to of 97611

rudedog...That $260M shortfall is in just earnings. With a net profit margin of roughly 2.9% the revenue shortfall is huge, try $8.9 billion. There has got to be a lot of explanation to be done. It's just too bad more wasn't offered Friday so that rational decisions could be made over the weekend. This is just another example of poor communication from CPQ. Steve

To: rudedog who wrote (56709)	4/10/1999 12:57:00 PM
From: robbie	Read Replies (2) \| Respond to of 97611

260M shortfall....and they don't discover it until the books are closed for the quarter??? These guys need to blow the dust off of that old textbook Managing Wall Street Expectations 101. Rudedog, just curious, what emotions are you feeling as an investor and someone who obviously likes the company in general? Robbie

To: rudedog who wrote (56709)	4/10/1999 1:05:00 PM
From: Loki	Respond to of 97611

rudedog....at 1.742 bil shares.... ------------------------------------------- .36/shr original estimate (.36 - .15 = .21) 1.742bil X .21 = missed by $365.8 mil.(net profit Q1) ------------------------------------------- ------------------------------------------- .31/shr reduced estimate (.31 - .15 = .16) 1.742bil X .16 = missed by $278.2 mil.(net profit Q1) ------------------------------------------- I am not sure what WS or the industry consider as an acceptable margin of error, but, this CPQ estimate is clearly outside the tolerance of that. Loki