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   Technology StocksDELL: Facts, Stats, News and Analysis


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To: jbn3 who wrote (316)8/3/1999 1:18:00 PM
From: jbn3
   of 335
 
First DELL Computers in Tennessee -- 3-AU-99, Austin American-Statesman, Thursday, 3 August, page D1

First Dell computers made in Tennessee roll off line

by Jerry Mahoney
American Statesman Staff

Less than four months after Dell Computer Corp. announced it would relocate its consumer and small-business PC division to Tennessee, the company on Monday produced its first Tennessee-made computers.

Dell and its 725 new Tennessee workers began producing two new Dimension models from the plant in Lebanon, 20 miles east of Nashville. It is Round Rock-based Dell's first U.S. plant outside Central Texas.

On Monday, the first Dimension computer produced at Dell's factory in Lebanon was set aside for Tennessee Gov. Don Sundquist. The second was presented to Lebanon Mayor Don Fox for his office.

"I want it for symbolic reasons," Fox said later. "I want to be able to say we have a Dell computer at City Hall."

Dell took over a 300,000-square-foot building in Lebanon shortly after the City of Nashville and the state agreed to a package of economic incentives to bring Dell to Middle Tennessee in May.

The company expects to employ approximately 1,000 Tennessee workers by the end of this year and 3,000 within five years.

The Lebanon plant will be followed by construction next year of two more buildings near the Nashville airport that will initially house technical support, parts and servicing.

The Nashville area, chosen during a search of cities in several states, gives Dell quicker access than Austin to Southeastern hubs of overnight delivery businesses such as United Parcel Service. That is expected to cut delivery time to customers.

There were also financial incentives. Last month, the Nashville Metro Council approved a $46 million package for Dell that included property tax breaks and money for training.

Moreover, as the first major technology company in Middle Tennessee, Dell won't face the kind of competition for workers that it does in Central Texas, where it employs about 18,000 people.

As the Dimension division is shifted to Tennessee, Dell officials have said the estimated 3,000 employees who work on the Dimension in Central Texas will be retrained to assemble other types of PCs.

Dell spokeswoman Libba Letton said Monday the date for the complete transfer has not been set.

The Lebanon operations will produce the new Dimension XPS T600 and Dimension L500 systems.

The Dimension XPS T600 system, starting at $1,719 and featuring a Pentium III 600 MHz processor, is Dell's high-end performance consumer PC for multimedia capabilities including games, Internet design and digital imaging.

The Dimension L system, starting at $1,087, is Dell's entry-level desktop PC. It runs on Intel Corp.'s new Celeron 500MHz processor.

Three other lines are expected to be added later.

Dell Vice President Paul Bell said the Middle Tennessee operations are critical to Dell's growth because that segment has grown by more than 50 percent for the company in the past year.

Dell is ranked first in sales to small businesses in the United States and No. 4 in sales to U.S. consumers, he said.

"This is the fastest growing part of Dell," Bell said in an interview after the plant's opening ceremony. "Strategically, this is a very important move for us."

Tennessee is not only getting the Dell operations, but also the operations of some of its Central Texas suppliers.

Dell said suppliers that will follow it to Tennessee include Austin Foam Plastics Inc., Capital City Container Corp., Digimedia Inc., Copyright Printing, Ryder Intergrated Logistics, IPC Communications Services and Lone Star InfoSystems.


This article includes material from the Associated Press.

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To: AnnieO who wrote (312)8/3/1999 1:24:00 PM
From: jbn3
   of 335
 
DELL overtakes HP in U.S. Workstation Market -- 3-AU-99. Thanks to FezKoprucu

To: stockman_scott who wrote (138339)
From: FezKoprucu
Tuesday, Aug 3 1999 12:35AM ET
Respond to Post # 138340 of 138373

This is GREAT NEWS!!! Good for the margins.

Fez
_______________
Dell overtakes HP in U.S. workstation market

By Stephen Shankland
Staff Writer, CNET News.com
August 2, 1999, 9:00 p.m. PT

Dell Computer has moved a step ahead in the Intel-based workstation race, taking first place from rival Hewlett-Packard in
both shipments and revenues in the United States.

In the first quarter of 1999, Dell topped HP in both leading categories, according to figures to be released tomorrow by
market research firm Dataquest. Dell shipped 26,323 units to HP's 24,159, bringing in $134 million in revenue to HP's $88
million.

The victory isn't complete, however. HP still is ahead in global shipments of high-end desktops built around Intel
microprocessors and the Windows NT operating system, and Dell still has to contend with workstations based on the Unix
operating system, according to Dataquest analyst Kimball Brown. The latter task is a bigger challenge, he said.

The workstation market is dwarfed by that of regular PCs, accounting for only a few percentage points of overall PC
shipments. But workstations are used for computing tasks requiring a lot of muscle, so the products tend to come with
high-end equipment and, consequently, comfortable profit margins. For PC makers looking at the decreasing margins of the
PC business, workstation gains would be welcome news.

Intel-based workstations ship in larger numbers than Unix machines, according to another research firm, International Data
Corporation. But Unix workstations, typically still fancier and more profitable, have been pulling in more revenue.

Later this year or early in 2000, however, revenues from Intel workstation sales will overtake that of Unix machines, IDC
said in June.

Intel machines are never going to replace Unix machines completely, though they have made inroads, Brown said. For one
thing, they have a long way to go before they can catch up to the 64-bit chips that power most Unix machines, he said.
"They have to get to 64-bit before they take over," he said.

Jon Peddie, an analyst at Jon Peddie Associates in Tiburon, California, said Unix is still most popular in large corporation
such as aerospace or automotive companies that have a large investment in Unix workstations, along with accompanying
software and training systems.

Powerful engineering software such as Dassault Systemes' Catia is being translated to Windows NT, though, and NT
machines are being used to animate the digital mouse that's the lead character in the upcoming film Stuart Little.

Rambus en route
Meanwhile, the workstation market, full of customers more willing to pay for high performance, is where the new Rambus
memory system will debut this fall. Dell in particular is expected to snap up much of the supply of Rambus chips, analysts
have said.

Rambus "lifts the top off the scalability of the Intel machines," Peddie said. "The communications between the processor and
memory were so deeply crippled, no matter how much faster [the processor], nothing ran faster."

Rambus will enable a new generation of software that can take advantage of the speed, he added.

In 1998, Sun Microsystems won the battle for revenue in the workstation market, but HP was close behind, IDC said.
Sun's workstations are popular in the financial community, analysts say.

Dell plans to boast of its victory tomorrow, announcing price cuts of as much as 17 percent in some models. The price cuts
came at the same time as the arrival of new 600-MHz processors from Intel in the Dell machines. (See related story)

Warning that market share struggles can be "a numbers game"--companies can fudge workstation shipment numbers
depending on how they classify the computers they sell--Peddie said Dell's rise to contend with the big-name companies
such as Compaq, HP, and IBM is noteworthy. It will be more significant if Dell manages to take the lead for a year, he
added..

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To: AnnieO who wrote (312)8/3/1999 2:04:00 PM
From: jbn3
   of 335
 
Dataquest shows DELL #1 in NT Workstations -- 3-AU-99. Thanks to KS.

To: VENKIE who wrote (138353)
From: KS
Tuesday, Aug 3 1999 10:18AM ET
Respond to Post # 138356 of 138373

August 03, 1999 10:08

Dell Precision WorkStations Rise to No. 1; Dataquest
Results Show Dell As Market Leader For NT
Workstations in U.S.

ROUND ROCK, Texas--(BUSINESS WIRE)--Aug. 3, 1999--

Momentum Continues with Price Cuts, New 600Mhz Processor Introduction

Dell Computer Corporation (Nasdaq:DELL), the world's leading direct computer systems company, today announced that
for the first time, it has become the clear U.S. market leader for workstations running Pentium(R)-class processors and the
Windows NT(R) operating system, according to estimates from Dataquest, a leading market research company(1).

Dataquest's first-quarter 1999 analysis showed that Dell Precision
WorkStations' U.S. market share has grown from zero at the beginning of 1997 to the leading position by the end of the
first quarter of 1999. Dell now holds the number two position in worldwide NT workstation shipments, according to
Dataquest.

"Customers consistently tell us that the Dell direct model is the ideal way to purchase workstations, and the results from
Dataquest bear this out," said Linda Hargrove, vice president, Americas, Dell Precision WorkStations.

"After only two years in the market, Dell has achieved its leadership position by delivering workstations built to the needs of
our largest and smallest customers in a variety of vertical markets. Dell continues to demonstrate its aggressive price and
performance position via today's price cuts and the introduction of the 600MHz Pentium III processor from Intel."

In addition to market share gains, Dell Precision WorkStations have continued to win awards in leading industry
publications, including a recent PC Magazine Editors' Choice Award for 3D workstations.

Also today, Dell cut U.S. prices on select configurations of Dell Precision WorkStations by up to 16.6 percent. A Dell
Precision WorkStation 410 configured with desktop chassis, single 450MHz Pentium III processor (dual-processor
capable), 9GB(2) SCSI hard disk drive, 256MB RAM, Diamond FireGL1 graphics card and 17/40X(3) CD-ROM is
now $2,599(4), a reduction of 16.6 percent.

Dell also cut prices on the entry-level Dell Precision WorkStation 210 by up to 7.7 percent and on the high-end Dell
Precision WorkStation 610 by up to 13.2 percent. A full list of prices and configurations for these systems can be found on
the World Wide Web at dell.com.

Effective today, Dell offers the Intel 600MHz Pentium(R) III processor on the Dell Precision WorkStation 210 and 410.

Dell Precision WorkStations are intended for professional users who demand exceptional performance in the
computer-aided design (CAD), geographic information systems (GIS), digital content creation (DCC), computer animation,
software development and financial analysis markets. Dell Precision WorkStations are designed to support Windows(R)
2000.

Ranked No. 78 among the Fortune 500 companies and No. 210 in the Fortune Global 500, Dell Computer Corporation is
the world's leading direct computer systems company, based on revenues of $19.9 billion for the past four quarters. Dell
designs, manufactures and customizes products and services to customer requirements and offers an extensive selection of
software and peripherals. Information on Dell and its products can be obtained through its toll-free number 80/388-8542 or
by accessing the Dell World Wide Web site at www.dell.com.

(1) Dataquest Advanced Desktops and Workstation Quarterly Statistics
Worldwide -- First Quarter 1999

(2) For hard drives, GB means 1 billion bytes; total accessible capacity varies depending on operating environment.

(3) 40x max/17x min variable speed.

(4) Price for a Dell Precision WorkStation 410 includes with desktop chassis, single 450MHz Pentium III processor (dual
processor capable), 9GB(2) SCSI hard disk drive, 256MB RAM, Diamond FireGL1 graphics card, 17/40X Max
CD-ROM(3), Windows NT 4.0, no monitor.

Dell is a registered trademark and Dell Precision is a trademark of Dell Computer Corporation.

Microsoft, Windows and Windows NT are registered trademarks and NT is a trademark of Microsoft Corporation.

Intel and Pentium are registered trademarks and Xeon is a trademark of Intel Corporation.

Fortune 500 is a registered trademark of The Time Inc. Magazine Company.

CONTACT: Dell Computer Corporation, Round Rock
Media Contacts:
Jon Weisblatt, 512/728-1226
jon_weisblatt@dell.com
or
David Frink, 512/728-2678
david_frink@dell.com
or
Investor Contacts:
Don Collis, 512/728-8671
don_collis@dell.com
or
Rob Williams, 512/728-7570
robert_williams@dell.com

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To: AnnieO who wrote (312)8/3/1999 2:08:00 PM
From: jbn3
   of 335
 
Mail.com To Provide Dellnet.com Services -- 3-AU-99. Thanks to Feza

To: Murrey Walker who wrote (138358)
From: FezKoprucu
Tuesday, Aug 3 1999 10:47AM ET
Respond to Post # 138359 of 138375

DELLNet is getting bigger and better.

Fez
_______________
Tuesday August 3 10:27 AM ET

Mail.com To Provide Dellnet.com Services

NEW YORK (Reuters) - Internet messaging company Mail.com Inc. said Tuesday it will provide Web-based e-mail
services for Dell Computer Corp.'s (Nasdaq:DELL - news) new Internet consumer Web site, Dellnet.com.

Mail.com, which went public in June, has since announced several deals with large corporate clients such as GTE Corp.
(NYSE:GTE - news) and AT&T Corp. (NYSE:T - news) for e-mail services for their Internet customers.

Mail.com shares Tuesday morning was up $2.125 to $17.25 on heavy volume, making it one of the top percentage gainers
on Nasdaq. It earlier went as high as $19.25.

The Dellnet.com Web site, launched last month, is one of Dell's key efforts to expand beyond just making computers. One
of those moves is to sell Internet access along with low-cost PCs. Dell last month came close to stealing the top slot from
Compaq Computer Corp. (NYSE:CPQ - news) as the number one maker of personal computers in the United States.

'Dell's competitive advantage is its ability to maintain a direct relationship with its customers,' Gary Millin, president of
Mail.com, said in a statement. 'Bundling Internet applications on Dell PCs, including Mail.com's messaging technology,
enhances that customer relationship even further.'

The site features Web access, free e-mail services accessible from any computer, Internet directory and search capabilities,
shopping services, portfolio tracking applications, and customized news.

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To: jbn3 who wrote (320)8/11/1999 9:59:00 AM
From: jbn3
   of 335
 
DELL maintains #1 Spot in Customer Satisfaction 10-AU-99
(Thanks to DOUGH, DELL Bear Thread)

Message 10895231

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To: jbn3 who wrote (320)8/11/1999 10:17:00 AM
From: jbn3
   of 335
 
Chief Technology Officer Leaves DELL
7-AU-99 Austin American-Statesman, Weekly Business Review, p3

Chief technology officer leaves Dell

Michael Dunn, chief technology officer for Dell Computer Corp., is leaving the computer maker for Time Warner Inc. As chief technology officer for Time Warner, Dunn will oversee the cable company's Internet research and development, infrastructure design and standards. He will also focus on Time Warner Digital Media, which includes the company's Internet hubs.

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To: jbn3 who wrote (322)8/17/1999 5:38:00 PM
From: Mick Mørmøny
   of 335
 
Dell 2Q beats estimates

No. 2 PC maker posts 47-percent rise in profits as Net sales soar
August 17, 1999: 4:48 p.m. ET

NEW YORK (CNNfn) - Dell Computer Corp. Tuesday reported a 47-percent jump in fiscal second-quarter profits, topping Wall Street estimates as sales over the Internet continue to soar at the No. 2 maker of personal computers.

The Round Rock, Texas-based company earned $507 million, or 19 cents a share for the three months ended July 30. Analysts polled by First Call expected Dell (DELL) to earn 17 cents a share in the quarter. Revenue surged 42 percent to $6.1 billion.

Dell easily outperformed its year-ago results, when it logged a profit of $346 million, or 12 cents a share, on $4.3 billion in revenue.

Cheers from the Street

Dell shares slipped 5/16 to close at 41-1/8 prior to the earnings announcement. In after-hours trade, Dell shares rebounded and were trading at 43-1/8.

Dan Niles, technology analyst at BancBoston Robertson Stephens, said Dell's stock should climb "$3 or $4 easily" in Wednesday trade.

"This is exactly what we were looking for," said Niles, who recently upgraded Dell to "long-term attractive and set a price target of $48 on the company's stock. "Unit growth was stronger year over year, gross margins were sequentially higher. Overall, this was a great quarter."

The leading direct seller of PCs said sales over the Internet reached $30 million a day in the quarter, representing nearly 40 percent of its total revenue.

Dell said shipments of personal computers increased 55 percent, two times analyst estimates of total industry growth.

"We are now the largest direct company within the worldwide home and small-business market, and are significantly more profitable in that space than our nearest direct competitor," said Michael Dell, chairman and chief executive officer. "Our U.S. consumer shipments grew more than 100 percent in the quarter, and about one-half of those sales were generated online, through www.dell.com."

Gross margins rose slightly from first-quarter levels, 22 percent from 21.5 percent, even as the average revenue per PC unit declined to $2,200 from $2,300.

Niles attributed Dell's gross margin growth to continued falling prices of such components as disk drives and memory chips, as well as better mix of computer products sold by the company.

"Server prices are coming down, but the margins on servers are still much better than the margins on desktops," Niles said.

Desktop PC sales represented 60 percent of Dell's system revenues, compared with 61 percent in the first quarter and 66 percent in the year-ago period.

For the first half of fiscal 2000, Dell earned $941 million, or 34 cents a share, on $11.7 billion in revenue, compared with a first-half 1999 profit of $650 million, or 23 cents a share, on $8.3 billion in revenue.

cnnfn.com

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To: Mick Mørmøny who wrote (323)8/18/1999 1:56:00 AM
From: Mick Mørmøny
   of 335
 
Earnings at Dell Rise 47 Percent Amid Robust Industry Sales

Dell Computer Corp. reported a 47 percent gain in quarterly earnings Tuesday, exceeding analysts' estimates, as the company continued to gain market share from rivals.

Dell said sales were exceptionally strong in its fiscal quarter, which ended July 31, among consumer and small-business customers.

Dell reported its results after the close of the stock market. In regular trading, its shares closed at $41.125, down 31.25 cents, off about 25 percent from a 52-week high of $55. In after-hours trading, the shares were quoted as high as $43.125.

The company also said that in the quarter it surpassed the rival Compaq Computer Corp. as the No. 1 supplier of personal computers. It based its contention, which was not independently confirmed, on a comparison of its product shipments with analysts' industrywide estimates. Compaq remained ahead worldwide, according to industry surveys.

Analysts found little not to like in Dell's report. Coming after reports of strong PC sales by Hewlett-Packard and IBM, Dell's results confirmed that the market is seeing healthy growth and some firming of prices. Dell's direct-sales model, in which it builds each computer to order, has allowed it to grow much faster than the industry as a whole. But Dell, IBM and Hewlett-Packard have also benefited from the continuing troubles at Compaq, analysts said.

"The problems at Compaq have helped HP, and the general trends in the market help Dell and Gateway," said Seymour Merrin, of Merrin Information Services. "There has been a lot of reinforcing of the high end because people who bought low-end machines on sale realize they got burned. Now they want more."

For its second fiscal quarter, which ended July 31, Dell reported earnings of $507 million, or 19 cents a share, up 47 percent from $346 million, or 12 cents a share, in the period a year earlier. Sales rose 42 percent, to $6.14 billion from $4.33 billion. The per-share figures reflected a reduction in the amount of stock outstanding because of Dell's share-repurchase program.

The company, which is based in Round Rock, Texas, said it saw a 100 percent gain in the sales of consumer products, an area it had not previously emphasized. Sales of network servers, work stations and storage products, which Dell collectively referred to as enterprise systems, increased 85 percent from an already strong position a year earlier.

"The whole enterprise segment is really on a tear for us," said chairman and chief executive Michael Dell in a telephone interview. "We're the No. 1 provider of work stations in the world, Unix and NT combined," he said, referring to the two operating systems commonly used on such machines.

Since Silicon Graphics announced last week that it would seek a manufacturing and marketing partner for its Windows NT-based work stations, speculation has centered on Dell as the likely candidate. But Dell said he had little interest in such a deal. "Quite frankly, I don't think we need them," he said. "We're doing it without them."

Dell again led industry growth in unit shipments, revenue and earnings. Shipments increased 55 percent, twice analysts' estimates of total industry growth. Dell's operating income was 11.3 percent of revenue, up from 11.1 percent a year earlier, as operating expenses declined nearly a full percentage point. Gross profit was 22 percent, up from 21.5 percent in the April quarter but down from 22.7 percent a year earlier.

"It looks like they're pretty much still on a roll," said Daniel Kunstler, an analyst with J.P. Morgan. "But this is where you have to be really careful: What can they do for an encore, and how much of this is Compaq being pretty much out of commission?"

nytimes.com


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To: Mick Mørmøny who wrote (324)9/7/1999 6:39:00 PM
From: Mick Mørmøny
   of 335
 
Dell Computer: Amazing Growth

Dell Computer (Nasdaq:DELL - news) makes boxes, computer boxes. And it makes more of them than most other companies. In the most recent fiscal quarter, it showed an amazing 42% revenue growth from the same quarter a year ago. Everyone who thought the company had to slow down was wrong. Now the question is: how does it keep growing, not just in revenues but in profitability?

Computer makers like Compaq (NYSE:CPQ - news) , Gateway (NYSE:GTW - news) and Dell have seen the Average Selling Price (ASP) for most computers continue to go lower. As the prices go down, so does the profitability. In order to maintain profit growth, it means the box maker has to either sell more computers and/or build higher value added computers. Unless the computer market continues to expand, the only way one manufacturer can sell more computers is to take market share from a rival. Fortunately, the market has kept expanding, though not at the rapid rate of only a year or two ago. No one understands this market better than Dell Computer, and its strategy is to have it both ways: more market share and more profitability.

The fiscal second quarter (July) showed the results of the strategy: revenues up 42% from the previous year; up 41% from the fiscal first quarter; earnings per share were 2 cents ahead of expectations, coming in at $0.19; that's 50% above last year's report and 19% above the previous quarter. The gross margin for DELL in the quarter was 22%, up 50 basis from the first quarter. The Internet sales growth was nothing less than astounding: $30 million of equipment a day vs. $18 million a day in the previous quarter. Those sales represent 40% of its revenue, and the corporate goal is to have them at 50%. With the strong cash flow, the company repurchased 17 million shares.

According to Morgan Stanley Dean Witter the elements that add up to this success are:

>>> the Internet has been effectively used as a sales tool
>>> a focused effort to regain sales momentum in Europe (22% of sales)
>>> new service and additional product sales efforts
>>> enterprise product and service growth (this is where the higher profitability is for the company)
>>> solid government relationships and sales as the government works on Y2K solutions

With these pistons firing, the consensus among analysts is that fiscal year earnings for 2000 will be $.72, and for 2001, $.98. Morgan Stanley has their estimates at $.77 and $1.03 for the same time periods. There is an analysts' meeting in Austin, Texas, on October 7 and look for upbeat reports and higher estimates from more analysts after that.

A new area for Dell is data storage. That means they're taking on EMC (NYSE:EMC - news) , IBM (NYSE:IBM - news) , and several other big names. But the competitive advantage Dell has: it makes and sells the servers that need the storage capability. That gives Dell the first crack at clients setting up servers for the first time as well as companies upgrading. Data storage is a very profitable part of the computing world, and while competition is extremely tough, Dell has already shown its ability to survive and thrive in one of the roughest segments of the computing business.

Furthermore, Dell sees four key areas where there is room for expansion:

>>> consumer and small business
>>> global expansion
>>> services
>>> enterprise computing systems

Management estimates there might be as much as $10 billion of revenue increase if these areas are properly developed.

So what does all the growth and optimism cost? At the time of this writing, with the stock at $49.50, the P/E is 64 when using the $.77 estimate for fiscal 2000 from Morgan Stanley; it's 69 when you use the consensus estimate of $.72. It gets closer to its growth rate when the 2001 estimate is in the equation: a P/E of 48 with the $1.03 from MS, and 50 when the consensus of $.98 is the denominator. Estimated growth rate is near 40% for both revenues and earnings. That means the stock is selling at about 1.5 times its growth rate for next year, and about 1 time for the year 2001 report. With that type of valuation, there isn't any room for a slowdown in sales. Investors have already bought into Dell's program and are true believers. If there is a slip-up in growth, revenues or earnings, this stock is vulnerable. It suffered that fate earlier in the year when it announced earnings right on the mark but the revenue growth had slowed.

Dell is a great company and is a leader in its group. It's the kind of stock that deserves watching and when there is an adverse quarter or announcement, an investor can buy it at a reasonable valuation. Right now, with a P/E ratio of almost twice the average P/E of the S&P500, with a P/E ratio that is the highest in the company's history both in absolute and relative terms, it's a stock that needs to grow even faster than expected if it's going to keep heading north.

- Ted Allrich
The Online Investor
Sept. 06, 1999

fnews.yahoo.com

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To: Mick Mørmøny who wrote (323)2/10/2000 9:08:00 PM
From: Sonki
   of 335
 
dan niles $50 target: DELL reported 4Q earnings today of 15c/share, inline with expectations; 50% of revenues came from DELL.com.

Dan Niles mentioned that he had downgraded the stock in 10/99 just before the first earnings warning, then upgraded on the pre-warning announcement.

DELL basically re-set its expectations to where they needed to be.

Revenue is important thing to note; they came in at $6.8 billion, above the $6.7 billion expected. Conference call will be later, but the press release gives a bit of a preview. Some of the positives include:

- DELL now accounts for 40% of the growth in the server market; grew its market share here from 2% in 1995 to 25% for the recently completed quarter; Windows 2000 should spur them even higher

- beyond the box revenues are growing at rates over 40%/year

- relationship with AOL was announced today where DELL will pre-install AOL software on some of its boxes

Niles commented that it is important to note that DELL provides more servers to dotcom companies than even SUNW.

Investment gains are above Wall Street expectations and growing revenues by over 30%. Profits were squeezed because (1) INTC could not supply enough products to DELL and (2) big corporations did not want to buy pc's at the end of the year, with y2k concerns. Both these issues are in the past and margins are starting to look better.

Niles says that DELL will be at $50 by latter part of this year and it is time to buy the stock.

As to the spate of attacks on web sites, Niles believes that in general it is a concern. People have to feel secure if they are going to do transactions over the net. However, security is getting better and it should improve going forward. In any event, it is not a new problem, just more prominent.

hoovershbn.hoovers.com






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