Uncle: Great article but i wonder how the competition will measure up to this,particularly Compaq.With 13 weeks inventory,falling ASPs,cheap prices etc obviously wouldn't do the job.
Have you any idea 'coz I don't. Bombastic statements by the competition won't cut it, show me the money I say to them.I look at the competitions performance and then I look at this and I am perplexed to say the least at their claims as well the pundits and biz rags of this world.
in millions, except per-share data)
Q3 FY'99 Q3 FY'98 YOY Growth rate
Net Revenue $4,818 $3,188 51%
Operating Income $539 $346 56%
Net Income $384 $248 55%
Earnings Per Share $0.28 $0.17 65%
"Our business continued to grow profitably in all customer segments and regions around the world, demonstrating the strength and consistency of the Dell direct model," said Michael Dell, chairman and chief executive officer. "Our focused execution has enabled us to achieve the No. 1 position in profitability in the computer systems industry. We also were No. 1 in revenue and unit shipment growth among the top 10 computer systems companies, growing at more than five times the industry rate worldwide."
Company Again Leads Industry in Asset Management
Dell generated $586 million in cash from operations. The company increased its cash and marketable securities to $2.8 billion, while repurchasing 18 million shares during the quarter. Dell has repurchased 360 million shares since its share repurchase program began in February 1996.
With a return on invested capital of 190 percent, Dell continued to lead the industry in this key area of asset management efficiency. Inventory improved to seven days, equivalent to 52 inventory turns per year.
Gross margin remained level at 22.5 percent compared to the year-ago quarter, while operating expenses declined to 11.4 percent from 11.6 percent a year ago. As a result, operating margin rose to a record 11.2 percent compared to 10.9 percent last year.
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