Poor DELL, great earning, but they missed the main point! most of those
earnings growth are not from operation but investment income.
Margins are shrinking as was the case at CSCO.
Operating income for the 6 month period grew a paltry 5%
Investment income for the 6 months grew a whoping 405%
At least DELL has a better and more honest disclosure than CSCO!!
Headlines lie number do not lie!!!!
DELL
Condensed Consolidated Statement of Income
and
Related Financial Highlights
(in millions, except per share data)
(unaudited)
Year To Date
---------------------
Actual Actual Yr. To Yr.
July 28, July 30, % Growth
2000 1999 Rates
-------- -------- ----------
Net revenue $14,950 $11,679 28.0%
Cost of revenue 11,824 9,135 29.4%
------- -------
Gross margin 3,126 2,544 22.9%
Selling, general and
administrative 1,524 1,077 41.5%
Research, development
and engineering 241 173 39.4%
------- -------
Total operating expenses 1,765 1,250 41.2%
------- -------
Operating income 1,361 1,294 5.2%
Financing and other 250 50 405.2%
------- -------
Income before income taxes 1,611 1,344 19.9%
Provision for income taxes 483 403
------- -------
Net income $ 1,128 $ 941 19.9%
======= =======
Basic earnings
per common share $ 0.44 $ 0.37 18.9%
======= =======
Diluted earnings
per common share $ 0.41 $ 0.34 20.6%
======= =======
Weighted average shares
outstanding:
Basic 2,578 2,526
Diluted 2,731 2,731
Percentage of Net Revenue:
--------------------------
Gross margin 20.9% 21.8%
Selling, general and
administrative 10.2% 9.2%
Research, development and
engineering 1.6% 1.5%
Total operating expenses 11.8% 10.7%
Operating income 9.1% 11.1%
Income before income taxes 10.8% 11.5%
Net income 7.5% 8.1%
Income tax rate 30.0% 30.0% |
