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

To: Perry Ganz who wrote (120370)	4/23/1999 8:45:00 PM
From: Chuzzlewit	Read Replies (4) \| Respond to of 176387

Perry, don't get me wrong, I didn't mean to imply that the results were bad, just that they weren't all that great. Here are a few particulars: 1. Three month operating revenues were up only 14.8% y/y while 9 month was up 26.1% -- does this show slowing sales? 2. Three month operating income increased 19.4%, but largely because an "other" expense account disappeared. If that account is stripped away, then operating income increased only by 15.7%. Still, this is a nice result but see the following two items: 3. R&D spending did not keep pace with sales, increasing only 2.4% y/y 4. Three-month G&A expense growth outstripped revenue growth by a wide margin -- 38.5% G&A vs 14.8% revenues. 5. Microsoft has much too much cash. There is no reason for the company to have $21.8 Billion, which is essentially idle. That cash should either go back to investors in the form of dividends, or put to constructive use. Leaving them in short-term instruments is a waste of a valuable resource. There are a few other items also, but this list will give you the major points. TTFN, CTC