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Technology Stocks : ATI Technologies in 1997 (T.ATY) -- Ignore unavailable to you. Want to Upgrade?

To: Marc who wrote (3381)	5/11/1999 12:23:00 PM
From: Marc	Read Replies (3) \| Respond to of 5927

May 11, 1999 Dell Expects to Post "Very Solid" Q1 results Michael Dell recently commented to the financial media that the company's business continues to be "very solid" and that Dell should continue to grow well in excess of overall PC industry growth rate in 1999, estimated at 15%. While the company is in its quiet period, we believe that a number of factors will contribute to Dell meeting or beating, consensus estimates of $0.16 when the company reports on May 18th and expect that revenue growth will grow in the 40%-41% range. The first of these factors is Dell's continued ability to gain market share as evidenced by IDC's estimates which show that Dell captured a 10% share of the worldwide PC market, up from 7.8% in Q1 1998. Even more impressive is that fact that, according to IDC's estimates, Dell grew its share of the U.S. market from 11.8% in Q1 1998 to 14.8% in Q1 1999, rapidly closing in on Compaq (NYSE:CPQ - news) which saw its market share drop from 18.2% to 16.1% during the same period. This trend is likely to continue, especially in the short-term as Compaq and other indirect PC manufacturers try to develop efficient business models that don't alienate their distributor-base. Another indication of Dell's momentum is that it continues to widen its leading market share in the large commercial segment (companies with over 500 employees) of the U.S. market and is also the largest provider of systems to the overall U.S. workplace. According to the ZD Market Intelligence Projected Market Monitor survey's preliminary estimates, Dell claimed a 30.9% of the large commercial workplace market while its nearest competitor's share declined to 21.5%. Similarly, the study also showed that Dell has a 21.2% market share of the overall U.S. workplace as. Once again it's nearest competitor's share declined to 18%. As the study itself points out: "Dell increased market share consecutively in every quarter since the fourth quarter of 1997 and the preliminary results from the first quarter of 1999 indicate that Dell is now opening up a sizable lead." Other factors that should contribute to strong revenue growth going forward include a major replacement cycle driven by the upcoming release of Windows 2000/Office 2000, the hints of a recovery in Asia, and the fact that Y2000 spending cuts are not materializing at the rate previously feared. A final kicker which should propel Dell even further is its increased focus on the high-end server market, exemplified by its recent OEM agreement with Network Appliances. We believe that the above-mentioned factors, among others will allow Dell to continue post revenue growth at levels 2-3 times the industry norm and are thus reiterating our buy rating on Dell. Analyst: Will Frankenhoff Updated on 5/11/99 with DELL at $42.62 Recommended 11/16/98 at $31.60 ===== Look like ATI will proove on more time that it's too good for it's competitors: NMGC was downgrade because of capacity constraints from key foundry suppliers, i suspect TDFX will also have problem, NVDA-->>don't know, S3 shouldn't have this type of problem.