Consolidated statements of income, financial position and cash flows and other financial data follow.
Dell, EqualLogic and Compellent 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 | ||||||||||||||||||
| July 29, | April 29, | July 30, | |||||||||||||||||
| 2011 | 2011 | 2010 | Sequential | Yr. to Yr. | |||||||||||||||
| Net revenue | |||||||||||||||||||
| Products | $ | 12,610 | $ | 12,059 | $ | 12,645 | 5 | % | (0 | %) | |||||||||
| Services, including software related | 3,048 | 2,958 | 2,889 | 3 | % | 6 | % | ||||||||||||
| Net revenue | 15,658 | 15,017 | 15,534 | 4 | % | 1 | % | ||||||||||||
| Cost of net revenue | |||||||||||||||||||
| Products | 9,935 | 9,436 | 10,931 | 5 | % | (9 | %) | ||||||||||||
| Services, including software related | 2,198 | 2,149 | 2,017 | 2 | % | 9 | % | ||||||||||||
| Total cost of net revenue | 12,133 | 11,585 | 12,948 | 5 | % | (6 | %) | ||||||||||||
| Gross margin | 3,525 | 3,432 | 2,586 | 3 | % | 36 | % | ||||||||||||
| Selling, general and administrative | 2,174 | 2,025 | 1,679 | 7 | % | 29 | % | ||||||||||||
| Research, development and engineering | 205 | 195 | 162 | 5 | % | 27 | % | ||||||||||||
| Total operating expenses | 2,379 | 2,220 | 1,841 | 7 | % | 29 | % | ||||||||||||
| Operating income | 1,146 | 1,212 | 745 | (5 | %) | 54 | % | ||||||||||||
| Interest and other, net | (55 | ) | (42 | ) | (49 | ) | (29 | %) | (12 | %) | |||||||||
| Income before income taxes | 1,091 | 1,170 | 696 | (7 | %) | 57 | % | ||||||||||||
| Income tax provision | 201 | 225 | 151 | (11 | %) | 33 | % | ||||||||||||
| Net income | $ | 890 | $ | 945 | $ | 545 | (6 | %) | 63 | % | |||||||||
| Earnings per share: | |||||||||||||||||||
| Basic | $ | 0.48 | $ | 0.50 | $ | 0.28 | (4 | %) | 71 | % | |||||||||
| Diluted | $ | 0.48 | $ | 0.49 | $ | 0.28 | (2 | %) | 71 | % | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||||
| Basic | 1,858 | 1,908 | 1,952 | (3 | %) | (5 | %) | ||||||||||||
| Diluted | 1,871 | 1,923 | 1,960 | (3 | %) | (5 | %) | ||||||||||||
|
Percentage of Total Net Revenue: |
|||||||||||||||||||
| Gross margin | 22.5 | % | 22.9 | % | 16.6 | % | |||||||||||||
| Selling, general and administrative | 13.9 | % | 13.5 | % | 10.8 | % | |||||||||||||
| Research and development | 1.3 | % | 1.3 | % | 1.0 | % | |||||||||||||
| Operating expenses | 15.2 | % | 14.8 | % | 11.8 | % | |||||||||||||
| Operating income | 7.3 | % | 8.1 | % | 4.8 | % | |||||||||||||
| Income before income taxes | 7.0 | % | 7.8 | % | 4.5 | % | |||||||||||||
| Net income | 5.7 | % | 6.3 | % | 3.5 | % | |||||||||||||
| Income tax rate | 18.4 | % | 19.2 | % | 21.7 | % | |||||||||||||
|
Net Revenue by Product Category: |
|||||||||||||||||||
| Servers and Networking | $ | 2,054 | $ | 1,973 | $ | 1,890 | 4 | % | 9 | % | |||||||||
| Storage | 502 | 481 | 624 | 4 | % | (20 | %) | ||||||||||||
| Services | 2,036 | 1,984 | 1,915 | 3 | % | 6 | % | ||||||||||||
| Software and Peripherals | 2,569 | 2,567 | 2,535 | 0 | % | 1 | % | ||||||||||||
| Mobility | 4,761 | 4,716 | 4,700 | 1 | % | 1 | % | ||||||||||||
| Desktop PCs | 3,736 | 3,296 | 3,870 | 13 | % | (3 | %) | ||||||||||||
| Consolidated net revenue | $ | 15,658 | $ | 15,017 | $ | 15,534 | 4 | % | 1 | % | |||||||||
|
Percentage of Total Net Revenue: |
|||||||||||||||||||
| Servers and Networking | 13 | % | 13 | % | 12 | % | |||||||||||||
| Storage | 3 | % | 3 | % | 4 | % | |||||||||||||
| Services | 13 | % | 13 | % | 12 | % | |||||||||||||
| Software and Peripherals | 16 | % | 17 | % | 17 | % | |||||||||||||
| Mobility | 31 | % | 32 | % | 30 | % | |||||||||||||
| Desktop PCs | 24 | % | 22 | % | 25 | % | |||||||||||||
|
Net Revenue by Global Segment: |
|||||||||||||||||||
| Large Enterprise | $ | 4,584 | $ | 4,477 | $ | 4,549 | 2 | % | 1 | % | |||||||||
| Public | 4,457 | 3,767 | 4,580 | 18 | % | (3 | %) | ||||||||||||
| Small and Medium Business | 3,709 | 3,768 | 3,535 | (2 | %) | 5 | % | ||||||||||||
| Consumer | 2,908 | 3,005 | 2,870 | (3 | %) | 1 | % | ||||||||||||
| Consolidated net revenue | $ | 15,658 | $ | 15,017 | $ | 15,534 | 4 | % | 1 | % | |||||||||
|
Percentage of Total Net Revenue: |
|||||||||||||||||||
| Large Enterprise | 29 | % | 30 | % | 29 | % | |||||||||||||
| Public | 28 | % | 25 | % | 30 | % | |||||||||||||
| Small and Medium Business | 24 | % | 25 | % | 23 | % | |||||||||||||
| Consumer | 19 | % | 20 | % | 18 | % | |||||||||||||
|
Consolidated Operating Income: |
|||||||||||||||||||
| Large Enterprise | $ | 448 | $ | 504 | $ | 288 | |||||||||||||
| Public | 484 | 370 | 369 | ||||||||||||||||
| Small and Medium Business | 404 | 463 | 323 | ||||||||||||||||
| Consumer | 73 | 136 | (21 | ) | |||||||||||||||
| Segment operating income | 1,409 | 1,473 | 959 | ||||||||||||||||
| Severance and facility actions | - | (19 | ) | (24 | ) | ||||||||||||||
| Broad based long-term incentives | (81 | ) | (97 | ) | (87 | ) | |||||||||||||
| Amortization of intangible assets | (95 | ) | (92 | ) | (87 | ) | |||||||||||||
| Acquisition-related | (87 | ) | (53 | ) | (16 | ) | |||||||||||||
| Other | - | - | - | ||||||||||||||||
| Consolidated operating income | $ | 1,146 | $ | 1,212 | $ | 745 | |||||||||||||
| Note: Percentage growth rates and ratios are calculated based on underlying data in thousands. | |||||||||||||||||||
