Dell Delivers Record Results in Fiscal-Year 2011 Fourth Quarter

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

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

	Fiscal Year Ended						% Growth Rates
	January 28,			January 29,
	2011⁽¹⁾			2010⁽¹⁾			Yr. to Yr.

Net revenue
Products	$	50,002		$	43,697		14	%
Services, including software related		11,492			9,205		25	%
Net revenue		61,494			52,902		16	%

Cost of net revenue
Products		42,068			37,534		12	%
Services, including software related		8,030			6,107		31	%
Total cost of net revenue		50,098			43,641		15	%

Gross margin		11,396			9,261		23	%

Selling, general and administrative		7,302			6,465		13	%
Research, development and engineering		661			624		6	%
Total operating expenses		7,963			7,089		12	%

Operating income		3,433			2,172		58	%

Interest and other, net ⁽²⁾		(83	)		(148	)	44	%
Income before income taxes		3,350			2,024		66	%
Income tax provision		715			591		21	%
Net income	$	2,635		$	1,433		84	%

Earnings per share:
Basic	$	1.36		$	0.73		86	%
Diluted	$	1.35		$	0.73		85	%

Weighted average shares outstanding:
Basic		1,944			1,954		(1	%)
Diluted		1,955			1,962		(0	%)

Percentage of Total Net Revenue:
Gross margin		18.5	%		17.5	%
Selling, general and administrative		11.9	%		12.2	%
Research and development		1.0	%		1.2	%
Operating expenses		12.9	%		13.4	%
Operating income		5.6	%		4.1	%
Income before income taxes		5.4	%		3.8	%
Net income		4.3	%		2.7	%
Income tax rate		21.3	%		29.2	%

Net Revenue by Product Category:
Servers and Networking	$	7,609		$	6,032		26	%
Storage		2,295			2,192		5	%
Services ⁽¹⁾		7,673			5,622		36	%
Software and Peripherals		10,261			9,499		8	%
Mobility		18,971			16,610		14	%
Desktop PCs		14,685			12,947		13	%
Consolidated net revenue	$	61,494		$	52,902		16	%

Percentage of Total Net Revenue:
Servers and Networking		12	%		11	%
Storage		4	%		4	%
Services ⁽¹⁾		12	%		11	%
Software and Peripherals		17	%		18	%
Mobility		31	%		31	%
Desktop PCs		24	%		25	%

Net Revenue by Global Segment:
Large Enterprise	$	17,813		$	14,285		25	%
Public		16,851			14,484		16	%
Small and Medium Business		14,473			12,079		20	%
Consumer		12,357			12,054		3	%
Consolidated net revenue	$	61,494		$	52,902		16	%

Percentage of Total Net Revenue:
Large Enterprise		29	%		27	%
Public		27	%		27	%
Small and Medium Business		24	%		23	%
Consumer		20	%		23	%

Consolidated Operating Income:
Large Enterprise	$	1,473		$	819
Public		1,484			1,361
Small and Medium Business		1,477			1,040
Consumer		65			107
Consolidated segment operating income		4,499			3,327
Severance and facility actions		(129	)		(481	)
Broad based long-term incentives		(350	)		(353	)
Amortization of intangible assets		(349	)		(205	)
Acquisition-related		(98	)		(116	)
Other ⁽³⁾		(140	)		-
Consolidated operating income	$	3,433		$	2,172


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

⁽¹⁾ Includes the results of Perot Systems Corporation ("Perot Systems"), which was acquired on November 3, 2009.

⁽²⁾ Interest and other, net for the fiscal year ended January 28, 2011 includes Dell’s receipt of a $72 million merger termination fee.

⁽³⁾ Other for the fiscal year ended January 28, 2011 includes amounts for the $100 million settlement of the SEC investigation and a $40 million settlement for a securities litigation matter.

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