Dell's Record First-Quarter Revenue, Net Income Driven By 52-Percent Increase in Sales of Enterprise Systems
Company Continues to Take Share Within Expanding Internet Infrastructure
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Round Rock, Texas, May 11, 2000
Dell again achieved industry-leading results against objectives of growth, profitability and liquidity during its fiscal first-quarter 2001, as the company broadened execution of a strategy to lead the massive ongoing build-out of the global Internet infrastructure.
First-quarter net revenue was up 31 percent, to $7.3 billion, and net income grew 21 percent, to $525 million. Quarterly per-share earnings totaled 19 cents, up 19 percent.
(in millions, except per-share data)
Q1 FY'01
Q1 FY'00
Change
Revenue
$7,280
$5,537
31%
Operating Income
$625
$600
4%
Net Income
$525
$434
21%
Earnings Per Share
$0.19
$0.16
19%
The portion of Dell's business attributable to more profitable products at both the core and edge of the Internet continued to increase: revenue from servers, storage products, workstations and notebook PCs rose to 48 percent of total system sales, up from 39 percent a year ago and a company record.
"The fundamental competitive advantages of our customer-focused direct business model are widening," said Michael S. Dell, chairman of the board and chief executive officer. "That's particularly true in the server and storage products at the heart of the Internet infrastructure."
Dell also expanded revenue and profitability beyond the base computer system, as worldwide services sales topped $500 million for the first time during the quarter, an increase of more than 50 percent.
Improved product mix together with lower-than-expected costs for key components helped the company simultaneously make investments in its Internet strategy and lift net margins from fourth-quarter levels. Operating expenses as a percent of revenue were 11.9 percent, and included spending for organization, training and research and development associated with growing Web-based opportunities. Net income as a percent of revenue was 7.2 percent.
Cash from first-quarter operations exceeded $760 million, part of which was used to repurchase 11 million shares of Dell common stock. Cash and investments stood at $7 billion at the end of the quarter, 75 percent higher than one year ago.
Dell achieved a record return on invested capital of 292 percent during the period, and ended the quarter with seven days of inventory. |
