Dell's Fourth-Quarter Shipments, Revenue, Operating Income Set Company Records; Q1 Guidance is $9.5 Billion in Sales, 23 Cents in Per-Share Earnings
ROUND ROCK, Texas--(BUSINESS WIRE)--Feb. 13, 2003--Dell (Nasdaq:DELL) ended its fiscal 2003 by posting best-ever quarterly product shipments, revenue and operating profit in the period ended Jan. 31.
The company's strength spanned all customer and product categories around the world. Dell gained almost three points of global market share from one year ago -- more than three points in servers -- and nearly five share points in the United States.
Fourth-quarter unit shipments were 25 percent higher; without Dell, the global industry grew less than 1 percent. Shipments in strategically important countries China, France, Germany and Japan increased a combined 39 percent. Dell server growth in those markets was 47 percent.
Quarterly revenue was $9.7 billion, up 21 percent from last year. Company earnings were 23 cents per share, an increase of 35 percent. Full-year net earnings were $2.12 billion, on record revenue of $35.4 billion. Earnings per share for fiscal 2003 reached 80 cents, up from 65 cents absent a special charge in the prior year.
Fourth Quarter Full Year
-------------------------- ---------------------------
(in millions,
except share FY '03 FY '02 Change FY '03 FY '02(a) Change
data)
Revenue $ 9,735 $ 8,061 21% $ 35,404 $ 31,168 14%
Operating Income $ 819 $ 594 38% $ 2,844 $ 2,271 25%
Net Income $ 603 $ 456 32% $ 2,122 $ 1,780 19%
Earnings Per
Share $ 0.23 $ 0.17 35% $ 0.80 $ 0.65 23%
(a) FY02 income and earnings data exclude a $742 million pretax charge
related to job reductions, consolidation of facilities and
impairment of assets. FY02 reported operating income was $1.79
billion and net income was $1.25 billion.
when economic conditions are weak," said Kevin Rollins, Dell's president and chief operating officer. "And the Dell team is exceptional at continually increasing customer value.
"That's why we're profitably gaining market share, and consistently producing industry-leading operating results. This performance would be outstanding in any environment, and we have no intention to depart from a very successful strategy."
In the first quarter of fiscal 2004, Dell expects that approach to produce a year-over-year increase in company unit volumes of more than 25 percent, compared with anticipated industry growth at a low single-digit rate. Mr. Rollins said that should result in quarterly revenue of $9.5 billion, up 18 percent from last year, and per-share earnings of 23 cents, 35 percent higher.
Fourth-quarter operating income of $819 million was Dell's highest ever. As a percent of revenue, operating income was 8.4 percent, up from the third quarter and one full point higher than a year ago. Operating expenses were 9.9 percent of revenue, matching a company low.
Dell's leading asset management helped generate $1.1 billion in cash from operations. Total cash and investments at the end of the quarter totaled $9.9 billion, a company record.
Shift From UNIX Drives Dell Server Growth
Dell's 28-percent increase in shipments of PowerEdge servers was more than five times larger than server volumes for the rest of the industry.
The company ranks No. 1 in the U.S., No. 2 worldwide, in shipments of servers based on both Microsoft Corp.'s Windows operating system and on Linux. Windows and Linux running on clusters of standards-based servers are increasingly being chosen as high-performance, low-cost alternatives to proprietary UNIX platforms for supercomputing applications. According to industry analysts, Dell accounts for 65 percent of global revenue from technical clusters, a relatively new but rapidly growing, high-end market category.
Revenue from external storage systems increased 87 percent year-over-year. The company's most rapid fourth-quarter storage growth came from sales of Dell EMC systems for storage-area networks.
Combined shipments of Inspiron and Latitude notebook computers were up 33 percent, nearly three times the rate of notebook-computer growth for the rest of the industry. Higher demand for notebooks is driven, in part, by growing customer adoption of wireless technology. Volumes of Dell's Dimension and OptiPlex desktop computers increased 24 percent, versus an average 3-percent decline for all other desktop systems.
Company Jumps to No. 3 in Asia-Pacific/Japan
All of Dell's regional businesses expanded at rates significantly better than the overall industry, led by Asia-Pacific and Japan with 42-percent shipment growth -- 45 percent for servers. Without Dell, the regional industry was up 7 percent overall, 2 percent in servers. Analysts ranked the company No. 3 in the region, up from No. 6 one year ago.
Dell's shipments in both the Americas and the U.S. grew 26 percent in the fourth quarter; the rest of the U.S. market declined 3 percent. Dell's fourth-quarter U.S. share rose to 30 percent. For the second straight full year, the company ranked No. 1 in all major U.S. product categories: servers, workstations and notebook and desktop computers.
Dell's 22-percent U.S. server growth was sharply higher than the average of competitors, and the company gained nearly three points of market share from the year-ago quarter. In the biggest period for home-PC sales, Dell increased shipments to consumers 38 percent, while other companies averaged a 2-percent decline.
Quarterly company revenue from Europe, the Middle East and Africa (EMEA) surpassed $2 billion for the first time. Regional shipments increased 18 percent to a record level, as volumes for the rest of the industry rose just 2 percent. Over the past year, the gap between Dell's No. 2 regional ranking and market leadership was narrowed by more than four share points, or better than one-third.
Dell shipments increased 32 percent in France and 14 percent in Germany; without Dell, industry volumes declined in both countries. Company server units in EMEA were up 29 percent, compared with a 2-percent average for others. In Germany, Dell server volumes were 46-percent higher than in the fourth quarter one year ago. |
