The unit growth is not so strong as to offset the price declines they're seeing in their chips.
Dan Niles
We're getting to the latter half of the year. And typically, the industry sells close to 20 percent more PCs in the second half versus the first half. People are getting ready in anticipation of a much stronger second half of the year.
people anticipation industry close ready
Slightly, to my mind, implies 3- to 5-percent growth. I think most people were looking at the 7- to 8-percent range for the fourth quarter.
growth people mind
I'm surprised it was this good, quite honestly. And more importantly the guidance for next year on the gross margin line of 57 percent. I think people are going to be very encouraged given that's up pretty substantially from what they did this last year.
people good guidance pretty gross
growth strong price
It's a disaster. They told us three months ago that Y2K isn't going to have any effect on them at all. They miss this quarter, now they're saying the next quarter is going to be even worse and that the first quarter will have even more losses.
disaster effect worse
It doesn't get a lot better than that, especially for a company that just hasn't been doing very well for the last year. It's going to be good for them tomorrow, and that should have a positive affect on a lot of the other chip makers, especially guys that are closely related. It will have generally a positive affect on the overall market.
positive good tomorrow market company guys
We believe that Compaq also did a good job on the profitability front, which should enable operating margins to more than double from third-quarter levels.. This should lead to earnings-per-share at least several cents higher than the consensus First Call estimates of sh.16.
estimates good call job
Though we believe Dell can outperform the Nasdaq in 2000 after a poor 1999, we believe this can only happen after expectations have been reset to more reasonable levels. We believe downside on the stock is to the high 0s. We remain on the sidelines until then.
poor expectations
Services are much more profitable than their core business.
business
The back half of the year looks like it will be better than expected.
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