Here it is!!! Right off the DELL web site. Great news for a great company.
Fez
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DELL EARNINGS RISE 65 PERCENT ON 51-PERCENT REVENUE GROWTH
Customer Sales on www.dell.com Top $10 Million a Day as Business Commerce Soars
Internet Now Represents 20 Percent of Company Revenue
ROUND ROCK, Texas, Nov. 12, 1998 -- - Dell Computer Corporation (Nasdaq:DELL) today reported earnings per share increased 65 percent to $0.28 for the quarter ended Nov. 1, 1998. Revenue grew 51 percent to $4.8 billion, as the company for the first time surpassed $10 million a day in customer sales via www.dell.com.
(in millions, except per-share data)
Q3 FY'99 Q3 FY'98 Yr. to Yr. Growth
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.
Asia-Pacific/Japan Region Grows 49 Percent; Global Momentum Continues
In contrast to overall industry growth of only two percent in the region, Dell again grew profitably in Asia-Pacific including Japan, achieving revenue growth of 49 percent. This exceeded the company's growth rate of 35 percent in the first half of the year, further highlighting the power of Dell's direct model even under difficult economic conditions. During the quarter, Dell launched its direct model in the world's most populous market, China, and began shipping from its new manufacturing and customer support center in Xiamen in southern China.
In Europe, Dell achieved revenue growth of 68 percent, maintaining its No. 2 market position. In seven countries in the region the company's growth exceeded 85 percent. During the quarter, Dell increased its market share by more than 50 percent and again achieved the highest growth rate among leading computer systems companies in the region.
Buoyed by gains in the government sector, revenue in the company's Americas region grew 46 percent. While its federal government business typically is robust in the third quarter, Dell also had strong sales gains among corporate customers and in its consumer and small business segment.
Demand for Enterprise and Notebook Products Continues
Spurred by strong demand among corporate customers, Dell continued its momentum in enterprise systems, which include servers and workstations, achieving year-over-year revenue growth of 104 percent. This was the company's eighth consecutive quarter of triple-digit growth in enterprise systems.
During the quarter, the company furthered its strategy to provide corporate customers greater ease in managing their data centers. Dell began shipping PowerVault fibre channel storage products and launched its new high-end PowerEdge 6350 server.
Workstations continued to make exceptional gains. With the launch of the Precision 210, Dell further enhanced its family of workstations based on the Microsoft NT operating system. The company continues to hold the No. 2 position worldwide in NT-based workstations.
Revenue from Dell's Latitude and Inspiron lines of notebook products increased 93 percent over the year-ago quarter. During the quarter, the company more than doubled its market share, capturing nine percent of the global notebook market. Dell notebooks continue to receive critical acclaim, as the wide-screen, high-powered Inspiron 7000 achieved the highest distinction as "best portable PC ever" in the current edition of PC Magazine. In addition, the company has just launched its sleek, lightweight Inspiron 3500, further expanding its technology leadership in this important market.
Sales of Dimension and OptiPlex desktop computers remained strong, as Dell maintained its No. 2 position in the worldwide desktop PC market. The company again was rated first among desktop vendors for corporate customer satisfaction by Technology Business Research in its annual Corporate IT Buying Behavior & Customer Satisfaction Study.
Dell's focus on delivering the best customer experience continued to achieve positive results in major customer satisfaction product and service surveys during the quarter. Key achievements included capturing Fortune's first annual Reader's Choice Award for Personal Service and Reliability, as Dell was chosen overwhelmingly as "best of breed" in PCs. The company also won top ratings for the third consecutive year in PC Magazine's annual Service and Reliability Survey.
Dell's Internet Sales and Service Excel
For the first time, Dell surpassed $10 million a day in worldwide sales to customers via www.dell.com, achieving a dramatic sales surge in corporate relationship accounts. Equivalent to an annual run rate of more than $3.7 billion, this is more than triple the on-line sales level achieved by Dell a year ago.
When Dell first launched direct Internet capabilities more than two years ago, customer sales through www.dell.com primarily were to consumers. Today, Dell's on-line business has expanded dramatically through sales and service to business and government customers.
The site has significantly enhanced e-service and technical support capabilities, with more than 8,500 customized web pages (Premier Pages) for larger customers. Among other features, customers can access more than 50,000 pages of technical data, participate in a public discussion forum (Dell Talk), register online for hardware and software updates and use a variety of advanced diagnostic tools.
Healthy Market Outlook Prevails
"As we come to the end of the calendar year, industry conditions remain healthy," said Mr. Dell. "Processor and operating system transitions and component cost declines continue to position our industry for strong customer demand.
"With this solid industry backdrop, we are focused on investing in the core strengths of our direct business model, providing the best customer experience in the industry. We believe that is a key reason why we achieve highest marks for performance, reliability and service in customer satisfaction surveys. As long as we maintain our focus and execution, we believe we have the competitive advantage to sustain our growth and extend our industry leadership."
Ranked No. 125 among the Fortune 500 companies and No. 363 in the Fortune Global 500, Dell Computer Corporation is the world's leading direct computer systems company, based on revenue of $16.8 billion for the past four quarters. 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 through its toll-free number 1-800-388-8542 or by accessing the Dell World Wide Web site at www.dell.com.
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