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

To: Mohan Marette who wrote (128223)	5/24/1999 5:13:00 PM
From: D. Swiss	Read Replies (1) \| Respond to of 176387

Mohan, Dogway is up because I sold June 65 puts on Friday. :o) Drew

To: Mohan Marette who wrote (128223)	5/25/1999 3:18:00 PM
From: Mehitabel	Respond to of 176387

Mo-- from Informationweek.com this week ------------------------> >>Financial News: Intel Server Sales Fuel Solid Quarter For Dell, HP Vendors post gains in sales, income By David Kleinbard Dell Computer and Hewlett-Packard last week both reported strong growth in net income for their most recent fiscal quarters. Healthy sales of Intel servers contributed to solid earnings for both companies. Dell's (DELL-Nasdaq) net income was $434 million for its first fiscal quarter ended April 30, up 42% from the comparable quarter last year. Dell's quarterly revenue increased 41% to $5.54 billion. Aggressive pricing fueled strong sales of servers and workstations, which were nearly double last year's first-quarter sales. "Dell's pricing is fabulously attractive on high-end machines," says Kimball Brown, an analyst with Dataquest. However, Dell's gross product margins declined 1% to 21.5% of sales from the preceding quarter. Some securities analysts were concerned about the decline, and Dell's stock dropped $4.25 to $39.81 on May 19, one day after the company disclosed earnings. Dell's report "was smack on the numbers from a revenue and earnings standpoint, but the gross margin decline was a bit more than we had expected," says Robert Anastasi, an analyst at investment firm Robinson-Humphrey Cos. A Dell spokeswoman says the company had planned for lower margins for the quarter resulting from competitive product pricing. And some analysts say that despite the margin drop, Dell is on solid ground. "Dell's quarter was terrific," says Michael Kwatinetz, an analyst with CS First Boston. Kwatinetz says other analysts had set unreasonably high expectations for the vendor's earnings. Hewlett-Packard's (HP-NYSE) net income rose 34% to $918 million for its second fiscal quarter ended April 30, compared with last year's second quarter. HP's quarterly revenue grew just 3% to $12.42 billion. However, HP's earnings exceeded securities analysts' estimates for the third consecutive quarter, helping to distance it from a rocky financial performance last year. HP's stock rose $7.25 on May 18 to $96, the day following the report. HP saw strong growth in business and consumer PCs, mobile systems, and Intel servers. But the company indicated it wasn't pleased with its revenue growth. "Clearly, our challenge is to convert order growth into stronger growth in revenue," said chairman and CEO Lew Platt. Also, HP's PA-RISC/Unix server business was problematic in the quarter. The vendor says Unix server revenue was down compared with last year's second quarter, and cited supply-chain problems related to its high-end Unix V-Class systems. HP says it hasn't ramped up production of its recently released N-Class midrange Unix servers.