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

To: hdl who wrote (126705)	5/19/1999 10:21:00 AM
From: J.C. Group	Respond to of 176387

Wednesday May 19, 9:48 am Eastern Time Company Press Release SOURCE: BancBoston Robertson Stephens BancBoston Robertson Stephens Reiterates Near-Term Cautious Stance on DELL SAN FRANCISCO, May 19 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271: BancBoston Robertson Stephens managing director and senior hardware analyst Daniel T. Niles today continued to urge near-term caution on DELL Computer (Nasdaq: DELL - news) after the company reported first quarter results. Dell is a leading PC company, providing custom-built PCs at competitive prices. ''Dell reported in-line results of $0.16. ASPs declined 17 percent year-over-year, driving operating margins down 70 basis points sequentially to the lowest level in six quarters,'' said Niles. ''Guidance for sequential revenue growth was 5 percent in the second quarter, or 35 percent year-over-year. This is the lowest year-over-year growth in more than four years. We believe that Dell is at the crossroads of growth or profitability, but not both. ''Going forward, we reiterate our cautious stance on Dell given a 63 times P/E and slowing growth. Dell is still the best PC company in the world, but the multiple is too high given the slowing growth, declining margins and lack of technology differentiation,'' said Niles. ''Our earnings per share estimates remain unchanged at $0.70 for fiscal 2000 and $0.90 for fiscal 2001.''