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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Eggolas Moria who wrote (55522)	4/11/1999 9:37:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 132070

WRT DELL, a single data point does not constitute a trend, especially when it is the noise level of +- .1%. There is a tradeoff between COGS and OPEX that is revenue dependent. The so called Price/Volume elasticity curve. DELL claimed that this was the reason for the revenue shortfall. Such a shortfall would also affect the net margin. Let us see what happens with DELL this quarter. Meanwhile, GTW margins and profitability improved considerably. A true statement would be that some of the companies are increasing margins while many are experiencing reduced margins. FWIW