From the latest filed Form 10-Q, the quarterly report to the SEC,
"Financing and other" has not increased substantially:
sec.gov
DELL COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(IN MILLIONS AND UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
------------------------- -------------------------
NOVEMBER 1, NOVEMBER 2, NOVEMBER 1, NOVEMBER 2,
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net revenue........................................ $4,818 $3,188 $13,070 $8,590
Cost of revenue.................................... 3,732 2,471 10,125 6,691
------ ------ ------- ------
Gross margin..................................... 1,086 717 2,945 1,899
------ ------ ------- ------
Operating expenses:
Selling, general and administrative.............. 471 312 1,296 832
Research, development and engineering............ 76 59 198 148
------ ------ ------- ------
Total operating expenses...................... 547 371 1,494 980
------ ------ ------- ------
Operating income.............................. 539 346 1,451 919
Financing and other................................ 9 13 26 36
------ ------ ------- ------
Income before income taxes....................... 548 359 1,477 955
Provision for income taxes......................... 164 111 442 296
------ ------ ------- ------
Net income....................................... $ 384 $ 248 $ 1,035 $ 659
====== ====== ======= ======
Basic earnings per common share (in whole
dollars)......................................... $ 0.30 $ 0.19 $ 0.82 $ 0.50
====== ====== ======= ======
Diluted earnings per common share (in whole
dollars)......................................... $ 0.28 $ 0.17 $ 0.74 $ 0.45
====== ====== ======= ======
Weighted average shares outstanding:
Basic......................................... 1,264 1,307 1,268 1,325
====== ====== ======= ======
Diluted....................................... 1,381 1,442 1,396 1,474
====== ====== ======= ======
</TABLE>
RESULTS OF OPERATIONS
The following table sets forth for the periods indicated the percentage of
consolidated net revenue represented by certain items in the Company's condensed
consolidated statement of income.
<TABLE>
<CAPTION>
PERCENTAGE OF CONSOLIDATED NET REVENUE
-----------------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
------------------------- -------------------------
NOVEMBER 1, NOVEMBER 2, NOVEMBER 1, NOVEMBER 2,
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net revenue:
Americas.................................... 69.7% 72.0% 68.5% 70.1%
Europe...................................... 24.4 22.0 25.2 22.9
Asia Pacific and Japan...................... 5.9 6.0 6.3 7.0
----- ----- ----- -----
Consolidated net revenue................. 100.0 100.0 100.0 100.0
Cost of revenue............................... 77.5 77.5 77.5 77.9
----- ----- ----- -----
Gross margin............................. 22.5 22.5 22.5 22.1
Operating expenses:
Selling, general and administrative......... 9.8 9.8 9.9 9.7
Research, development and engineering....... 1.6 1.8 1.5 1.7
----- ----- ----- -----
Total operating expenses................. 11.4 11.6 11.4 11.4
----- ----- ----- -----
Operating income......................... 11.2 10.9 11.0 10.7
Financing and other........................... 0.2 0.4 0.2 0.4
----- ----- ----- -----
Income before income taxes.................. 11.4 11.3 11.2 11.1
Provision for income taxes.................... 3.4 3.5 3.3 3.4
----- ----- ----- -----
Net income.................................. 8.0% 7.8% 7.9% 7.7%
===== ===== ===== =====
</TABLE>
Later, Dennis |
