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

To: Alohal who wrote (123452)	5/10/1999 12:09:00 AM
From: Mohan Marette	Respond to of 176387

Ref:Dogway in a good quarter Vs Dell in a 'bad' quarter. Alohal: With this kind of stunning performance (by dogway) don't expect a potential acquisition by Dell to be accretive or anything else for that matter. I think $12-$15 billion can be better spent elsewhere. Dogway in a good quarter. Dogway's Q1 performance in Europe. ..' Gateway's European region continued its turnaround, with first quarter consumer unit volume in the region posting a 23% gain over the same period last year, and revenues up 1%. The United Kingdom consumer segment showed a strong 32% increase in unit sales in the first quarter, with revenues up 13%. However, due to softness in Europe's business market, unit growth across the region in all segments was flat and revenues were down 13%.... Gross Margin Levels Pricing discipline, focused vendor management, healthy overseas margin performance, solid execution and a richer product mix, all contributed to strong overall margin performance in the quarter. Gross margins for the first quarter were 21.4 %, up from 19.5% last year and essentially flat compared to 21.6% in the fourth quarter of 1998. This represents the fifth consecutive quarter of year-over-year margin improvement for Gateway. Operating Income up 29% Operating income for the first quarter totaled $140.8 million, up 29% from $109.2 a year ago. Other income increased 58% to $14.8 million compared to the first quarter of 1998, due to increased interest income.... Net Income increased 31% Net income increased to $99.6 million compared to last year's first quarter level of $75.9 million, a 31% growth rate over last year. Earnings per diluted share increased 29% to $.62 from $.48 per diluted share a year ago. Dell in a bad quarter. You may want to compare this to Dell's performance in quarter ended Jan 1999 (for lack of a better alternative until May 18,99). Dell's Gross margin growth was 50.5%,Operating income grew 55.5%,net income grew 54.6% and remember that was considered a bad quarter by the pundits. Dell's in a bad quarter (Q4 99) in millions, except per-share data) Yr. to Yr. Growth Net Revenue 48% Operating Income 56% Net Income 55% Earnings Per Share 64% Now if Dell acquire Dogway they might as well kiss good bye to these stellar numbers perhaps for good.Let me say it again- paying $12-15 billion dollars for Dogway to get 25% of the U.S consumer market is too expensive in my opinion. I also don't think it is a wise idea to spend that kind of money to eliminate them from the market place so that others may not get them and use it against Dell,this idea is even wilder than the other one.