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Technology Stocks : Dell Technologies Inc.

DELL 120.60

+1.8%

Jan 9 9:30 AM EST

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To: BGR who wrote (80435)	11/15/1998 3:03:00 PM
From: BGR	Read Replies (3) of 176387

Going back one year, the non-diluted earnings growth seems to hold steady around the 55% posted this quarter. I do not have access to data going back any further. So it seems that the additional diluted EPS growth of around 10% on the average was always accomplished with share buybacks. I have another (possibly dumb) question and would appreciate any help. Are net incomes adjusted for money used in share buybacks? If yes, given that DELL's debt and cash position has continually strengthened during this period and the total outstanding shares have steadily gone down (meaning that repurchased shares are indeed being retired) does this mean that if DELL did not plow back cash to buy shares, the excess cash would have showed up in excess earnings instead, thus pushing up net income (meaning that the diluted EPS growth is a valid one)? If not, how is DELL's cash and debt position strengthening while shares are being bought back but not accounted for in net income calculation? The money has to come from somewhere! TIA! -Apratim.

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