Dell Reports Strong Profitability in Third Quarter

⁽¹⁾ Other for the three months ended October 29, 2010 consists of Dell's receipt of a $72 million merger termination fee which on a GAAP basis is recorded in Interest and Other, Net.



DELL INC.
Reconciliation of Non-GAAP Financial Measures
(in millions, except per share data and percentages)
(unaudited)

	Nine Months Ended						% Growth Rates
	October 28,			October 29,
	2011			2010			Yr. to Yr.

GAAP gross margin	$	10,426		$	8,105		29	%

Non-GAAP adjustments:
Amortization of intangibles		222			209
Severance and facility actions		5			47
Acquisition-related		29			2
Non-GAAP gross margin	$	10,682		$	8,363		28	%


GAAP operating expenses	$	6,926		$	5,817		19	%

Non-GAAP adjustments:
Amortization of intangibles		(65	)		(55	)
Severance and facility actions		(14	)		(65	)
Acquisition-related		(157	)		(57	)
Other ⁽¹⁾		-			(140	)
Non-GAAP operating expenses	$	6,690		$	5,500		22	%


GAAP operating income	$	3,500		$	2,288		53	%

Non-GAAP adjustments:
Amortization of intangibles		287			264
Severance and facility actions		19			112
Acquisition-related		186			59
Other ⁽¹⁾		-			140
Non-GAAP operating income	$	3,992		$	2,863		39	%


GAAP net income	$	2,728		$	1,708		60	%

Non-GAAP adjustments:
Amortization of intangibles		287			264
Severance and facility actions		19			112
Acquisition-related		186			59
Other ⁽¹⁾		-			68
Aggregate adjustment for income taxes		(181	)		(123	)
Non-GAAP net income	$	3,039		$	2,088		46	%


GAAP earnings per share - diluted	$	1.46		$	0.87		68	%
Non-GAAP adjustments per share - diluted		0.16			0.19
Non-GAAP earnings per share - diluted	$	1.62		$	1.06		53	%


GAAP Diluted WAS		1,874			1,961


Percentage of Total Net Revenue:

GAAP gross margin		22.6	%		17.7	%
Non-GAAP adjustment		0.6	%		0.6	%
Non-GAAP gross margin		23.2	%		18.3	%

GAAP operating expenses		15.0	%		12.7	%
Non-GAAP adjustment		(0.5	%)		(0.7	%)
Non-GAAP operating expenses		14.5	%		12.0	%

GAAP operating income		7.6	%		5.0	%
Non-GAAP adjustment		1.1	%		1.3	%
Non-GAAP operating income		8.7	%		6.3	%

GAAP net income		5.9	%		3.7	%
Non-GAAP adjustment		0.7	%		0.9	%
Non-GAAP net income		6.6	%		4.6	%

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

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