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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Eggolas Moria who wrote (110655)	3/22/1999 12:36:00 PM
From: Dennis R. Duke	Read Replies (2) \| Respond to of 176387

I have no position in Dell. I am sitting on an unrealized loss of 50% in RDRT and thinking about jumping over to Dell on this weakness, but may not do it. But I hate unsupported facts like this financial engineering thing. Here is some cut-outs from Dell's last Form 10-K, the annual report to the SEC: sec.gov Financing and Other (Page 15, MD&A section) Financing and other increased $19 million in fiscal 1998 from fiscal 1997 to $52 million primarily as a result of increased investment income due to increased average marketable securities balances. Also, financing and other increased $27 million in fiscal 1997 from fiscal 1996 to $33 million due to increased investment income and decreased interest expense. DELL COMPUTER CORPORATION CONSOLIDATED STATEMENT OF INCOME (IN MILLIONS) <TABLE> <CAPTION> FISCAL YEAR ENDED ----------------------------------------- FEBRUARY 1, FEBRUARY 2, JANUARY 28, 1998 1997 1996 ----------- ----------- ----------- <S> <C> <C> <C> Net revenue............................................. $12,327 $7,759 $5,296 Cost of revenue......................................... 9,605 6,093 4,229 ------- ------ ------ Gross margin.......................................... 2,722 1,666 1,067 ------- ------ ------ Operating expenses: Selling, general and administrative................... 1,202 826 595 Research, development and engineering................. 204 126 95 ------- ------ ------ Total operating expenses...................... 1,406 952 690 ------- ------ ------ Operating income.............................. 1,316 714 377 Financing and other..................................... 52 33 6 ------- ------ ------ Income before income taxes and extraordinary loss..... 1,368 747 383 Provision for income taxes.............................. 424 216 111 ------- ------ ------ Income before extraordinary loss...................... 944 531 272 Extraordinary loss, net of taxes........................ -- (13) -- ------- ------ ------ Net income............................................ 944 518 272 Preferred stock dividends............................... -- -- (12) ------- ------ ------ Net income available to common stockholders............. $ 944 $ 518 $ 260 ======= ====== ====== Basic earnings per common share (in whole dollars): Income before extraordinary loss...................... $ 1.44 $ 0.75 $ 0.36 Extraordinary loss, net of taxes...................... -- (.02) -- ------- ------ ------ Earnings per common share............................. $ 1.44 $ 0.73 $ 0.36 ======= ====== ====== Diluted earnings per common share (in whole dollars): Income before extraordinary loss...................... $ 1.28 $ 0.68 $ 0.33 Extraordinary loss, net of taxes...................... -- (.02) -- ------- ------ ------ Earnings per common share............................. $ 1.28 $ 0.66 $ 0.33 ======= ====== ====== Weighted average shares outstanding: Basic................................................. 658 710 716 Diluted............................................... 738 782 790 Some Financing and other activity, but not the level indicated. Later, Dennis

To: Eggolas Moria who wrote (110655)	3/22/1999 12:44:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

Gary - money gained from stock transactions or most other internal use of cash do not appear on the earnings statement and do not affect earnings. You can rest easy on that - the earnings DELL has been reporting are real.

To: Eggolas Moria who wrote (110655)	3/22/1999 12:48:00 PM
From: Dennis R. Duke	Read Replies (1) \| Respond to of 176387

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