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To: hlpinout who wrote (88978)	1/22/2001 8:17:58 AM
From: hlpinout	Respond to of 97611

Puttin' on a positive spin... -- 1/22/01 4:30 AM Source:Business Wire Competitive Strength of Direct Business Model Business Editors and High-Tech Writers AUSTIN, Texas--(BUSINESS WIRE)--Jan. 22, 2001-- Unit Shipments Up 40-Plus Percent; Revenue, Earnings Will Be Below Company Goals Dell (Nasdaq:DELL) said today its unit shipments grew as much as four times the industry rate, and that it expects to report strong revenue growth and industry-leading profitability, during its fiscal fourth quarter. Nevertheless, operating results will fall short of company guidance at the start of the quarter because of deterioration in global economic conditions and overall demand for computer systems and services. "This performance clearly distinguishes us from other computer-systems companies, given current realities of the global economy and computer-systems market," said Michael Dell, the company's chairman and chief executive officer. "Customer preference for direct relationships continues to grow and we're extending our price leadership, regardless of the economic environment." Dell said fourth-quarter revenue is expected to total $8.5 to $8.6 billion, up 25 to 27 percent from the year-ago quarter, with net income up 16 to 20 percent. Per-share earnings will likely reach 18 to 19 cents. The company previously said it anticipated earnings of 26 cents per share, on revenue of $8.7 billion. According to Dell, quarterly unit shipments are likely to increase more than 40 percent from the year-ago quarter. Industry analysts estimate Dell added at least two full points of overall market share during the period. Company growth in shipments of strategically important enterprise-class systems -- servers, storage products and workstations -- and notebook computers was particularly strong. Mr. Dell said the company plans to continue to aggressively manage its already lean cost structure during the next year. Cost leadership, combined with the downward trend in component prices, should permit Dell to deliver the greater value customers are looking for from providers of computer systems and services. "We are bringing the full competitive force of our direct business model to bear on the marketplace to benefit customers, accelerate market-share gains and position Dell for profitable, long-term growth at a multiple of the industry rate," he said. "We intend to succeed on all counts." Dell's fourth quarter ends this Friday. The company will announce full financial results on Feb. 15. About Dell Dell Computer Corporation (Nasdaq:DELL) is the world's leading direct computer systems company, based on revenues of $30 billion for the past four quarters, and is a premier provider of products and services required for customers to build their Internet infrastructures. The company ranks No. 56 on the Fortune 500, No. 154 on the Fortune Global 500 and No. 3 on the Fortune "most admired" lists of companies. Dell designs, manufactures and customizes products and services to customer requirements, and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained on the World Wide Web at www.dell.com. NOTE: Dell will hold a related conference call for analysts at 8:30 A.M. EST/7:30 A.M. CST today. The call can be accessed "live" via www.dell.com. A replay of the call will be available from 11:30 A.M. EST/10:30 A.M. CST today until 8:00 P.M. EST/7:00 P.M. CST Tuesday (Jan. 23) by dialing 719/457-0820 (passcode: 521674). ------------------------------ Dell is a registered trademark of Dell Computer Corporation. Fortune and Fortune 500 are registered trademarks, and Fortune Global 500 is a trademark, of Time Inc. Dell disclaims any proprietary interest in the marks and names of others. Special note: Statements in this press release that relate to future results and events are based on the company's current expectations. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including the level of demand for the company's products and services; the intensity of competition; currency fluctuations; the cost and availability of certain key components; the company's ability to effectively manage product transitions and to continue to expand and improve its infrastructure (including personnel and systems); and equity investment volatility. Additional discussion of these and other factors affecting the company's business and prospects is contained in the company's periodic filings with the Securities and Exchange Commission.