Toni Sacconaghi
Toni Sacconaghi
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.
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.
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.
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?
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.
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.
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.
adopt bargaining continue defects either favorable forced further growing intel leverage likely lose maintain move offer point position puts revenue seems strength
The growing strength of AMD puts Dell in a favorable bargaining position with Intel, in our view. Even if Dell does not move to adopt AMD, it is likely to continue to use them as a leverage point to gain further concessions from Intel. Intel seems likely to lose revenue and/or margin, either because Dell defects or because it is forced to offer incremental concessions to Dell to maintain their loyalty.
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.
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.
clearly expecting force gone ingredient material presume since stock took work
Since he took over, the stock has gone up 25 percent, so clearly the market...appears to be expecting material cost-cutting, of which I would presume a significant ingredient would be work force reduction.
amount confident excited given goes hard issue leadership overhead people pulling stock tremendous
The really big overhead issue is the merger. There's just a tremendous amount of uncertainty around that. It's hard to get people excited about, or confident about, the stock given the uncertainty around the merger. If it goes through, there's uncertainty around pulling off integration. If it doesn't go through, the leadership of HP is in question.
appear
Sun's fundamental story does not appear to be changing.