Toni Sacconaghi
Toni Sacconaghi
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.
likely market prevailing quick suggesting
Suggesting that quick fixes are likely may be underestimating prevailing market dynamics.
anxiety buy excuses execution filled fourth fun heard investors levels likely quarter rumor stock
The fourth quarter is likely to be filled with anxiety-provoking rumor and speculation - not fun for investors. Moreover, we do think that many investors may feel that they have heard too many excuses about execution to buy into the stock now, even at levels around $100.
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.
gains intel loss marketing offset potential seems share unlikely
Overall, it seems unlikely that Dell's share gains would be enough to offset the potential loss of Intel marketing monies.
cash companies focused improving quite somewhat
I think companies have been so focused on improving operations. Quite frankly, they have been somewhat negligent about their burgeoning cash balances.
channel checks galaxy given high indicate launch line profile received seven weeks
Our channel checks indicate that Sun's new line of x86 'Galaxy' servers are not yet shipping. This is disappointing given the high profile launch Galaxy received seven weeks ago.
needs percent plus sentiment
The sentiment is that there needs to be, or will be, a significant 20 percent or plus work-force reduction.
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.
appear
Sun's fundamental story does not appear to be changing.
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.
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.
checks continues demand fact hoped imminent remain simply
As much as we had hoped that our reseller checks would have been more encouraging, the fact is simply that demand continues to remain weak, with no imminent rebound,