Some real whoppers in the Dell quarterly report:
1) The extension of the "quarter" to May 4th has already been pointed out (I can see it now, in (d)Hell HQ ..."but,
we haven't made the number yet, Mike" "No problem, just add
4 days to the quarter, that's an easy 5 percent!"
2) Margins are, quite simply, going down the toilet. Sales
up, earnings flat...yeah, that's the ticket!
3) Much of the "growth" DELL experienced came from Asia. Who wants to bet they don't continue to grow next Q?
4) They benefitted on the bottom line from a reduction in
income taxes of 1.5%
Three Months Ended
--------------------------
Actual Actual Actual
May 4, Feb. 2, April 28,
2001 2001 2000
------ ------ ------
Percentage of Net Revenue:
-------------------------
Gross margin 18.0% 18.0% 20.5%
Selling, general and administrative 9.2% 9.9% 10.3%
Research, development and engineering 1.5% 1.3% 1.6%
Special charge 0.0% 1.2% 0.0%
Total operating expenses 10.7% 12.4% 11.9%
Operating income 7.3% 5.6% 8.6%
Income before income taxes 8.0% 7.2% 10.3%
Net income 5.8% 5.0% 7.2%
Income tax rate 28.5% 30.0% 30.0%
Net revenue by geographic region:
--------------------------------
% of total net revenue
----------------------
Americas 68% 70% 70%
Europe 22% 21% 22%
Asia Pacific and Japan 10% 9% 8%
Net revenue by product line:
---------------------------
% of system net revenues
------------------------
Desktops 51% 53% 52%
Enterprise 20% 19% 18%
Portables 29% 28% 30%
------ ------ ------
Total system net revenues 100% 100% 100%
====== ====== ======
Awarding a multiple of 35 to a company without growth is sheer insanity, but so it goes!
Disclosure: No position on (d)HELL |
