Toni Sacconaghi
Toni Sacconaghi
believe generate grow held improve market meaningful order recent revenue share sun unix unlikely
While Sun has held its own in Unix servers in our recent surveys, we believe that Unix market revenues are unlikely to grow materially going forward, and accordingly, that Sun will need to improve its (x86)-based share in order to generate meaningful revenue growth.
needs percent plus sentiment
The sentiment is that there needs to be, or will be, a significant 20 percent or plus work-force reduction.
budgets capital consistent february growth highly likely remain spending survey uncertain worldwide
This is consistent with our February 2002 worldwide IT spending survey results, which indicated that IT budgets remain highly uncertain and that IT capital spending growth in 2002 is likely to be modest.
appear
Sun's fundamental story does not appear to be changing.
likely market prevailing quick suggesting
Suggesting that quick fixes are likely may be underestimating prevailing market dynamics.
clearly failure growth guidance lower months rate seven today
Their failure to reiterate the timeframe for that guidance today clearly suggests a notably lower growth rate than they had anticipated seven months ago.
currency expect force growth impact memory negatively rising
We expect that currency headwind, which will negatively impact Q1 growth ... and rising memory prices, will force Dell to keep expectations low.
beneath company confidence declined despite extra fact gain gross headline margins pc share week
Beneath the headline numbers, Dell's FY Q4 06 was not confidence inspiring. Dell didn't gain PC share in the quarter, despite the fact that its gross margins declined meaningfully and the company had an extra week in the quarter.
company fourth gained growth highly pc quarter revenue struck
We think that the fourth quarter will demonstrate Dell gained PC share, particularly in highly scrutinized international markets, and that the company struck a better 'balance' between revenue growth and profitability.
current investor percent reduction satisfy seems workforce
A workforce reduction of 10 to 15 percent (3,800 to 5,700 people) now seems more likely, but may not be enough to satisfy current investor expectations.
calendar component cost declines gain gained growth market moderate pc selling share sustaining unit
Dell was able to gain PC share while sustaining moderate ASP (average selling prices) declines and benefiting from component cost declines. The PC market unit growth was 15% during calendar Q4 and Dell gained share.
fourth fulfilled grow priority straight third year
This is the fourth straight year where your priority is to make money. It's the third where your priority is to grow . You haven't fulfilled those priorities.
against consequences deliver fourth fulfilled growth next previous priorities priority straight third time year
This is the fourth straight year at your analysts' day where you said your priority was to make money. It's the third straight year where you've said your priority is to grow. You haven't fulfilled those priorities in the previous time frame. ... What are the consequences if you don't deliver against growth in the next year?
buy investors stock
Should investors buy the stock now? No. There is too much uncertainty...for investors to get comfortable with the stock short-term.