Dell Delivers Record Results in Fiscal-Year 2011 Fourth Quarter

Dell Delivers Record Results in Fiscal-Year 2011 Fourth Quarter and Full Year

Consolidated statements of income, financial position and cash flows and other financial data follow.
Dell, EqualLogic, PowerVault, Vostro and Inspiron are trademarks of Dell Inc. Dell disclaims any proprietary interest in the marks and names of others.

DELL INC.
Condensed Consolidated Statement of Income and Related Financial Highlights
(in millions, except per share data and percentages)
(unaudited)

	Three Months Ended									% Growth Rates
	January 28,			October 29,			January 29,
	2011			2010			2010			Sequential		Yr. to Yr.

Net revenue
Products	$	12,751		$	12,520		$	12,096		2	%	5	%
Services, including software related		2,941			2,874			2,804		2	%	5	%
Net revenue		15,692			15,394			14,900		2	%	5	%

Cost of net revenue
Products		10,337			10,415			10,501		(1	%)	(2	%)
Services, including software related		2,064			1,976			1,930		4	%	7	%
Total cost of net revenue		12,401			12,391			12,431		0	%	(0	%)

Gross margin		3,291			3,003			2,469		10	%	33	%

Selling, general and administrative		1,977			1,816			1,780		9	%	11	%
Research, development and engineering		169			163			179		4	%	(6	%)
Total operating expenses		2,146			1,979			1,959		8	%	10	%

Operating income		1,145			1,024			510		12	%	124	%

Interest and other, net ⁽¹⁾		(18	)		52			(41	)	(134	%)	57	%
Income before income taxes		1,127			1,076			469		5	%	140	%
Income tax provision		200			254			135		(21	%)	49	%
Net income	$	927		$	822		$	334		13	%	177	%

Earnings per share:
Basic	$	0.48		$	0.42		$	0.17		14	%	182	%
Diluted	$	0.48		$	0.42		$	0.17		14	%	182	%

Weighted average shares outstanding:
Basic		1,924			1,939			1,957		(1	%)	(2	%)
Diluted		1,938			1,949			1,971		(1	%)	(2	%)

Percentage of Total Net Revenue:
Gross margin		21.0	%		19.5	%		16.6	%
Selling, general and administrative		12.6	%		11.8	%		12.0	%
Research and development		1.1	%		1.0	%		1.2	%
Operating expenses		13.7	%		12.8	%		13.2	%
Operating income		7.3	%		6.7	%		3.4	%
Income before income taxes		7.2	%		7.0	%		3.2	%
Net income		5.9	%		5.3	%		2.2	%
Income tax rate		17.8	%		23.6	%		28.7	%

Net Revenue by Product Category:
Servers and Networking	$	2,090		$	1,844		$	1,804		13	%	16	%
Storage		574			543			599		6	%	(4	%)
Services		1,943			1,924			1,922		1	%	1	%
Software and Peripherals		2,651			2,579			2,477		3	%	7	%
Mobility		4,850			4,858			4,653		(0	%)	4	%
Desktop PCs		3,584			3,646			3,445		(2	%)	4	%
Consolidated net revenue	$	15,692		$	15,394		$	14,900		2	%	5	%

Percentage of Total Net Revenue:
Servers and Networking		13	%		12	%		12	%
Storage		4	%		3	%		4	%
Services		12	%		12	%		13	%
Software and Peripherals		17	%		17	%		17	%
Mobility		31	%		32	%		31	%
Desktop PCs		23	%		24	%		23	%

Net Revenue by Global Segment:
Large Enterprise	$	4,692		$	4,326		$	4,197		8	%	12	%
Public		3,973			4,442			3,820		(11	%)	4	%
Small and Medium Business		3,749			3,665			3,336		2	%	12	%
Consumer		3,278			2,961			3,547		11	%	(8	%)
Consolidated net revenue	$	15,692		$	15,394		$	14,900		2	%	5	%

Percentage of Total Net Revenue:
Large Enterprise		30	%		28	%		28	%
Public		25	%		29	%		26	%
Small and Medium Business		24	%		24	%		22	%
Consumer		21	%		19	%		24	%

Consolidated Operating Income:
Large Enterprise	$	502		$	400		$	281
Public		366			451			333
Small and Medium Business		450			391			282
Consumer		69			-			9
Consolidated segment operating income		1,387			1,242			905
Severance and facility actions		(17	)		(31	)		(86	)
Broad based long-term incentives		(101	)		(75	)		(107	)
Amortization of intangible assets		(85	)		(89	)		(86	)
Acquisition-related		(39	)		(23	)		(116	)
Consolidated operating income	$	1,145		$	1,024		$	510


Note: Percentage growth rates and ratios are calculated based on underlying data in thousands.

⁽¹⁾ Interest and other, net for the three months ended October 29, 2010 includes Dell’s receipt of a $72 million merger termination fee.

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 Next Page »