EXHIBIT 99.1
Enterprise Product Sales and International Revenue Growth
Highlight Dell's Third Quarter;
Strong Revenue Increases Reported for Storage,
Servers and Enhanced Services
ROUND ROCK, Texas--(BUSINESS WIRE)--Nov. 10, 2005--Dell Inc. (NASDAQ:DELL):
Continued successful application of Dell's unique direct business model and
solid sales increases in enterprise products and services led the company to
record revenue and units in fiscal third quarter 2006.
Dell had record shipments of 9.2 million units worldwide in the quarter.
The quarter was led by a 36 percent increase in revenue from enhanced services
to $1.2 billion, a 35 percent increase from storage and a 16 percent increase
from servers.
Sales outside of the United States rose 20 percent from the same period a
year ago and accounted for 40 percent of Dell's worldwide revenue in the
quarter. Asia Pacific and Japan had particularly strong revenue growth of 20
percent year-over-year, led by rapid expansion in China with unit growth of 46
percent.
Company revenue for the period ended Oct. 28 was $13.9 billion, a company
record and up 11 percent year-over-year. Dell's earnings per share was 39 cents
on a non-GAAP basis, up 18 percent from a year ago. Reported GAAP third-quarter
earnings was 25 cents per share, reflecting a previously announced one-time
charge of $442 million. The charge consisted of the cost of servicing certain
OptiPlex systems that include a vendor part that failed to perform to Dell's
specifications, workforce realignment, product rationalizations and excess
facilities.
Third Quarter Year to Date
(in millions, FY'06 FY'05 Change FY'06 FY'05 Change
except share -------- -------- -------- -------- -------- --------
data)
Revenue $13,911 $12,502 11% $40,725 $35,748 14%
Non-GAAP
Operating
Income(a) $ 1,196 $ 1,095 9% $ 3,543 $ 3,067 16%
GAAP Operating
Income $ 754 $ 1,095 (31%) $ 3,101 $ 3,067 1%
Non-GAAP Net
Income(a)(b) $ 944 $ 846 12% $ 2,813 $ 2,376 18%
GAAP Net Income $ 606 $ 846 (28%) $ 2,560 $ 2,376 8%
Non-GAAP
EPS(a)(b) $ 0.39 $ 0.33 18% $ 1.14 $ 0.92 24%
GAAP EPS $ 0.25 $ 0.33 (24%) $ 1.03 $ 0.92 12%
(a) Non-GAAP results for the three- and nine-month periods ended
October 28, 2005 exclude certain charges. See Itemized
Reconciliation between Net Income on a GAAP and non-GAAP basis for
the period ended October 28, 2005 table below.
(b) Non-GAAP results for the nine-month period ended October 28, 2005
also exclude the impact of an $85 million ($0.03 per share) tax
benefit related to a revised estimate of taxes on the repatriation
of earnings under the American Jobs Creation Act of 2004 recorded
in the second quarter of fiscal year 2006.
"Our operating performance was again exceptional by any comparable
measure," Kevin Rollins, Dell's chief executive officer, said. "However, we hold
ourselves to higher standards."
As such, Mr. Rollins said, Dell has made recent moves that further
streamline several parts of its business.
"We're always looking for better ways to improve the efficiencies of our
business," he said. "Customers in every major market of the world are
significantly and increasingly choosing to do business directly with Dell, so we
are able to make these changes from a position of strength. The changes will
reduce complexity and cost, improve customer value and satisfaction, and
encourage strong profitable growth in all products, segments and regions."
Cash flow from operations for the quarter was $1.1 billion and $3.3 billion
year-to-date. Dell ended the quarter with $12.3 billion in cash and investments.
Dell spent $1.4 billion to repurchase 41 million shares during the third quarter
and year-to-date has repurchased almost 140 million shares.
The company expects fourth quarter revenue of $14.6 to $15.0 billion and
earnings per share of $0.40 to $0.42. The company plans to repurchase at least
$1.7 billion in stock during the fourth quarter.
Product and Service Performance
Dell continued to hold the No. 1 worldwide share position for computer
shipments. Globally, the company had a 21 percent increase in server shipments
year-over-year. Dell's server offerings were enhanced during the quarter with
the addition of multi-core Intel Xeon technology in the single-, dual- and
four-socket server and workstation product lines, delivering up to 51 percent
greater performance while maintaining a common system image for both single- and
multi-core systems.
Revenue for storage products, up 35 percent year-over-year, grew at a rate
of more than three times that of the industry. Demand for server and storage
products also helped drive revenue growth for Dell's enhanced services of 36
percent year-over-year. Dell continues to make investments in its service
operations and expand its offerings to continue improving support for all
customers. In a recent survey of IT executives by CIO Magazine, Dell was rated
No. 1 among leading vendors for providing "impeccable customer service."
With the increasing flexibility of wireless Internet access, more customers
are moving from desktop platforms to wireless notebook computers. Sales of
Dell's mobility products in the quarter continued to reflect the shift as
shipments increased 38 percent year-over-year. Software and peripherals revenue
grew 25 percent year-over-year, driven by imaging and displays. Dell's laser
shipments doubled year-over-year, led by growth in color laser printer
shipments. Shipments of replacement ink and toner cartridges also nearly doubled
year-over-year.
Regional Performance
Dell's global growth continued in all regions in the third quarter. Revenue
in Europe, Middle East and Africa (EMEA) was up 25 percent year-over-year
outside the United Kingdom and 19 percent for the entire region. The U.K.
experienced less revenue growth because of slower spending in its public sector.
The region had growth across all product categories and a 72 percent
year-over-year revenue increase in enhanced services. Mobility product shipments
increased 48 percent year-over-year. Germany had revenue growth of 25 percent
and France had revenue growth of 26 percent.
Asia Pacific and Japan had significant growth year-over-year in Dell's most
strategic product categories. Revenue for enhanced services in the region
increased 71 percent in the quarter. Mobility products revenue increased 26
percent year-over-year on the strength of 55 percent year-over-year growth in
unit shipments. China, a key market for Dell in the region, had revenue growth
of 29 percent on unit shipment growth of 46 percent year-over-year, led by the
home and small business sector.
Storage revenue was up 44 percent year-over-year in the Americas to lead
enterprise growth. Servers and networking revenue increased 16 percent and
enhanced services increased 23 percent year-over-year in the region. Growth in
sales of servers, storage and mobility products helped to drive an overall
revenue increase of 22 percent year-over-year for Americas International. Growth
in the Americas was affected by a decline in the U.S. Consumer business.
About Dell
Dell Inc. (NASDAQ:DELL) is a trusted and diversified information-technology
supplier and partner, and sells a comprehensive portfolio of products and
services directly to customers worldwide. Dell, recognized by Fortune magazine
as America's most admired company and No. 3 globally, designs, builds and
delivers innovative, tailored systems that provide customers with exceptional
value. Company revenue for the last four quarters was $54.2 billion. For more
information about Dell and its products and services, visit www.dell.com.
Special Note
Statements in this press release that relate to future results and events
(including statements about Dell's anticipated financial and operating
performance) are forward-looking statements based on Dell's current
expectations. Actual results in future periods could differ materially from
those projected in these forward-looking statements because of a number of risks
and uncertainties including: general economic, business and industry conditions;
the level and intensity of competition in the technology industry and the
pricing pressures that have resulted; local economic and labor conditions,
political instability, unexpected regulatory changes, trade protection measures,
tax laws and fluctuations in foreign currency exchange rates; the ability to
accurately predict product, customer and geographic sales mix; the ability to
timely and effectively manage periodic product transitions; reliance on
third-party suppliers for product components, including dependence on several
single-source supplier relationships; the ability to effectively manage
operating costs; the failure to attract and retain qualified personnel; the
level of demand for the products and services Dell offers; the ability to manage
inventory levels to minimize excess inventory, declining inventory values and
obsolescence; and the effect of armed hostilities, terrorism, natural disasters
and public health issues on the economy generally, on the level of demand for
Dell's products and services and on Dell's ability to manage its supply and
delivery logistics in such an environment. Additional discussion of these and
other factors affecting Dell's business and prospects is contained in Dell's
periodic filings with the Securities and Exchange Commission.
Use of Non-GAAP Financial Information
This press release includes additional non-GAAP measures of gross margin,
operating expenses, operating income, income before income taxes, income taxes,
net income and earnings per share. These non-GAAP measures have been adjusted to
exclude costs of servicing certain OptiPlex systems, workforce realignment,
product rationalizations and excess facilities charges recorded in the third
quarter of fiscal year 2006. These non-GAAP measures also exclude the income tax
benefit related to the repatriation of earnings under the American Jobs Creation
Act recorded in the second quarter of fiscal year 2006. These adjustments to
Dell's GAAP results are made with the intent of providing both management and
investors a more complete understanding of the underlying operational results
and trends and Dell's marketplace performance. Management believes that these
additional non-GAAP measures provide a basis for which meaningful year-over-year
operating performance comparisons can be made. The presentation of this
additional information is not meant to be a substitute for financial statements
prepared in accordance with generally accepted accounting principles in the
United States. See Itemized Reconciliation between Net Income on a GAAP and
non-GAAP basis for the period ended October 28, 2005 table below.
Consolidated statements of income, financial position and cash flows
follow.
Dell is a trademark of Dell Inc.
Dell disclaims any proprietary interest in the marks and names of others.
DELL INC.
Condensed Consolidated Statement of Income
and Related Financial Highlights
(in millions, except per share data)
(unaudited)
Three Months Ended
-------------------------- % Growth Rates
Oct. 28, July 29, Oct. 29, ---------------------
2005 2005 2004 Sequential Yr. to Yr.
-------- -------- -------- ---------- ----------
Net revenue $13,911 $13,428 $12,502 4% 11%
Cost of revenue 11,322 10,929 10,189 4% 11%
Other product
charges(a) 338 -- --
-------- -------- --------
Gross margin 2,251 2,499 2,313 (10%) (3%)
Selling, general and
administrative(a) 1,391 1,204 1,101 16% 26%
Research, development
and engineering 106 122 117 (13%) (9%)
-------- -------- --------
Total operating
expenses 1,497 1,326 1,218 13% 23%
-------- -------- --------
Operating income 754 1,173 1,095 (36%) (31%)
Investment and other
income, net 50 61 48 (18%) 4%
-------- -------- --------
Income before income
taxes 804 1,234 1,143 (35%) (30%)
Income tax
provision(a) 198 214 297 (8%) (34%)
-------- -------- --------
Net income(a) $606 $1,020 $846 (41%) (28%)
======== ======== ========
Earnings per common
share:
Basic $0.25 $0.42 $0.34
======== ======== ========
Diluted $0.25 $0.41 $0.33
======== ======== ========
Weighted average
shares outstanding:
Basic 2,395 2,418 2,493
Diluted 2,435 2,478 2,546
Percentage of Total
Net Revenue:
- -------------------
Gross margin 16.2% 18.6% 18.5%
Selling, general and
administrative 10.0% 9.0% 8.8%
Research, development
and engineering 0.8% 0.9% 0.9%
Operating expenses 10.8% 9.9% 9.7%
Operating income 5.4% 8.7% 8.8%
Income before
income taxes 5.8% 9.2% 9.1%
Net income 4.4% 7.6% 6.8%
Income tax rate 24.6% 17.4% 26.0%
Net Revenue
by Geographic Region
(in billions):
- ---------------------
Americas $9.2 $8.9 $8.6 4% 8%
Europe 3.1 2.9 2.6 6% 19%
Asia Pacific -- Japan 1.6 1.6 1.3 (3%) 20%
Percentage of Total
Net Revenue:
- -------------------
Americas 66% 66% 68%
Europe 22% 22% 21%
Asia Pacific -- Japan 12% 12% 11%
Net Revenue
by Product Category
(in billions):
- --------------------
Desktop PCs $5.1 $5.1 $5.2 2% (2%)
Mobility 3.6 3.4 3.1 4% 14%
Servers and Networking 1.4 1.3 1.2 4% 16%
Storage 0.5 0.4 0.3 11% 35%
Enhanced Services 1.2 1.2 1.0 7% 36%
Software and
Peripherals 2.1 2.0 1.7 4% 25%
Percentage of Total
Net Revenue:
- -------------------
Desktop PCs 37% 37% 42%
Mobility 26% 26% 25%
Servers and Networking 10% 10% 9%
Storage 3% 3% 3%
Enhanced Services 9% 9% 7%
Software and
Peripherals 15% 15% 14%
Note: Percentage growth rates and ratios are calculated based on
underlying data in thousands.
(a) See Itemized Reconciliation for further discussion.
DELL INC.
Condensed Consolidated Statement of Income
and Related Financial Highlights
(in millions, except per share data)
(unaudited)
Nine Months Ended
----------------- % Growth Rates
Oct. 28, Oct. 29, --------------
2005 2004 Yr. to Yr.
-------- -------- --------------
Net revenue $40,725 $35,748 14%
Cost of revenue 33,146 29,228 13%
Other product charges(a) 338 --
-------- --------
Gross margin 7,241 6,520 11%
Selling, general and administrative(a) 3,802 3,100 23%
Research, development and engineering 338 353 (4%)
-------- --------
Total operating expenses 4,140 3,453 20%
-------- --------
Operating income 3,101 3,067 1%
Investment and other income, net 170 143 19%
-------- --------
Income before income taxes 3,271 3,210 2%
Income tax provision(a) 711 834 (15%)
-------- --------
Net income(a) $2,560 $2,376 8%
======== ========
Earnings per common share:
Basic $1.06 $0.94
======== ========
Diluted $1.03 $0.92
======== ========
Weighted average shares outstanding:
Basic 2,423 2,517
Diluted 2,476 2,572
Percentage of Total Net Revenue:
- --------------------------------
Gross margin 17.8% 18.2%
Selling, general and administrative 9.4% 8.7%
Research, development and engineering 0.8% 1.0%
Operating expenses 10.2% 9.7%
Operating income 7.6% 8.6%
Income before income taxes 8.0% 9.0%
Net income 6.3% 6.6%
Income tax rate 21.7% 26.0%
Net Revenue by Geographic Region
(in billions):
- --------------------------------
Americas $26.6 $24.0 11%
Europe 9.2 7.7 20%
Asia Pacific -- Japan 4.9 4.0 21%
Percentage of Total Net Revenue:
- --------------------------------
Americas 65% 67%
Europe 23% 22%
Asia Pacific -- Japan 12% 11%
Net Revenue by Product Category
(in billions):
- -------------------------------
Desktop PCs $15.5 $15.2 2%
Mobility 10.3 8.7 18%
Servers and Networking 4.0 3.6 12%
Storage 1.3 0.9 36%
Enhanced Services 3.5 2.6 36%
Software and Peripherals 6.1 4.7 29%
Percentage of Total Net Revenue:
- --------------------------------
Desktop PCs 38% 43%
Mobility 25% 24%
Servers and Networking 10% 10%
Storage 3% 3%
Enhanced Services 9% 7%
Software and Peripherals 15% 13%
Note: Percentage growth rates and ratios are calculated based on
underlying data in thousands.
(a) See Itemized Reconciliation for further discussion.
DELL INC.
Non-GAAP Condensed Consolidated Statement of Income
and Related Financial Highlights
(in millions, except per share data)
(unaudited)
Three Months Ended
-------------------------- % Growth Rates
Oct. 28, July 29, Oct. 29, ---------------------
2005(a) 2005(b) 2004 Sequential Yr. to Yr.
-------- -------- -------- ---------- ----------
Net revenue $13,911 $13,428 $12,502 4% 11%
Non-GAAP cost
of revenue 11,322 10,929 10,189 4% 11%
-------- -------- --------
Non-GAAP gross margin 2,589 2,499 2,313 4% 12%
Non-GAAP selling,
general and
administrative 1,287 1,204 1,101 7% 17%
Research, development
and engineering 106 122 117 (13%) (9%)
-------- -------- --------
Non-GAAP operating
expenses 1,393 1,326 1,218 5% 14%
-------- -------- --------
Non-GAAP operating
income 1,196 1,173 1,095 2% 9%
Investment and other
income, net 50 61 48 (18%) 4%
-------- -------- --------
Non-GAAP income before
income taxes 1,246 1,234 1,143 1% 9%
Non-GAAP income tax
provision 302 299 297 1% 2%
-------- -------- --------
Non-GAAP net income $944 $935 $846 1% 12%
======== ======== ========
Non-GAAP earnings
per common share:
Basic $0.39 $0.39 $0.34
======== ======== ========
Diluted $0.39 $0.38 $0.33
======== ======== ========
Weighted average
shares outstanding:
Basic 2,395 2,418 2,493
Diluted 2,435 2,478 2,546
Non-GAAP Percentage
of Total Net Revenue:
- ----------------------
Gross margin 18.6% 18.6% 18.5%
Selling, general and
administrative 9.2% 9.0% 8.8%
Research, development
and engineering 0.8% 0.9% 0.9%
Operating expenses 10.0% 9.9% 9.7%
Operating income 8.6% 8.7% 8.8%
Income before
income taxes 9.0% 9.2% 9.1%
Net income 6.8% 7.0% 6.8%
Income tax rate 24.2% 24.2% 26.0%
Net Revenue by
Geographic Region
(in billions):
- ------------------
Americas $9.2 $8.9 $8.6 4% 8%
Europe 3.1 2.9 2.6 6% 19%
Asia Pacific -- Japan 1.6 1.6 1.3 (3%) 20%
Percentage of Total
Net Revenue:
- -------------------
Americas 66% 66% 68%
Europe 22% 22% 21%
Asia Pacific -- Japan 12% 12% 11%
Net Revenue by Product
Category (in billions):
- ------------------------
Desktop PCs $5.1 $5.1 $5.2 2% (2%)
Mobility 3.6 3.4 3.1 4% 14%
Servers and Networking 1.4 1.3 1.2 4% 16%
Storage 0.5 0.4 0.3 11% 35%
Enhanced Services 1.2 1.2 1.0 7% 36%
Software and
Peripherals 2.1 2.0 1.7 4% 25%
Percentage of Total
Net Revenue:
- -------------------
Desktop PCs 37% 37% 42%
Mobility 26% 26% 25%
Servers and Networking 10% 10% 9%
Storage 3% 3% 3%
Enhanced Services 9% 9% 7%
Software and
Peripherals 15% 15% 14%
Note: Percentage growth rates and ratios are calculated based on
underlying data in thousands.
(a) All Non-GAAP amounts have been adjusted to exclude other product
charges and certain non-recurring charges included in selling,
general and administrative expenses. See Itemized Reconciliation.
(b) Non-GAAP income tax provision, net income and related ratios have
been adjusted to exclude an income tax benefit of $85 million. See
Itemized Reconciliation.
DELL INC.
Non-GAAP Condensed Consolidated Statement of Income
and Related Financial Highlights
(in millions, except per share data)
(unaudited)
Nine Months Ended
----------------- % Growth Rates
Oct. 28, Oct. 29, --------------
2005(a) 2004(b) Yr. to Yr.
-------- -------- --------------
Net revenue $40,725 $35,748 14%
Non-GAAP cost of revenue 33,146 29,228 13%
-------- --------
Non-GAAP gross margin 7,579 6,520 16%
Non-GAAP selling, general and
administrative 3,698 3,100 19%
Research, development and engineering 338 353 (4%)
-------- --------
Non-GAAP operating expenses 4,036 3,453 17%
-------- --------
Non-GAAP operating income 3,543 3,067 16%
Investment and other income, net 170 143 19%
-------- --------
Non-GAAP income before income taxes 3,713 3,210 16%
Non-GAAP income tax provision 900 834 8%
-------- --------
Non-GAAP net income $2,813 $2,376 18%
======== ========
Non-GAAP earnings per common share:
Basic $1.16 $0.94
======== ========
Diluted $1.14 $0.92
======== ========
Weighted average shares outstanding:
Basic 2,423 2,517
Diluted 2,476 2,572
Non-GAAP Percentage
of Total Net Revenue:
- ----------------------
Gross margin 18.6% 18.2%
Selling, general and administrative 9.1% 8.7%
Research, development and engineering 0.8% 1.0%
Operating expenses 9.9% 9.7%
Operating income 8.7% 8.6%
Income before income taxes 9.1% 9.0%
Net income 6.9% 6.6%
Income tax rate 24.2% 26.0%
Net Revenue by Geographic Region
(in billions):
- --------------------------------
Americas $26.6 $24.0 11%
Europe 9.2 7.7 20%
Asia Pacific -- Japan 4.9 4.0 21%
Percentage of Total Net Revenue:
- --------------------------------
Americas 65% 67%
Europe 23% 22%
Asia Pacific -- Japan 12% 11%
Net Revenue by Product Category
(in billions):
- -------------------------------
Desktop PCs $15.5 $15.2 2%
Mobility 10.3 8.7 18%
Servers and Networking 4.0 3.6 12%
Storage 1.3 0.9 36%
Enhanced Services 3.5 2.6 36%
Software and Peripherals 6.1 4.7 29%
Percentage of Total Net Revenue:
- --------------------------------
Desktop PCs 38% 43%
Mobility 25% 24%
Servers and Networking 10% 10%
Storage 3% 3%
Enhanced Services 9% 7%
Software and Peripherals 15% 13%
Note: Percentage growth rates and ratios are calculated based on
underlying data in thousands.
(a) All Non-GAAP amounts have been adjusted to exclude other product
charges and certain non-recurring charges included in selling,
general and administrative expenses. See Itemized Reconciliation.
(b) Non-GAAP income tax provision, net income and related ratios have
been adjusted to exclude an income tax benefit of $85 million. See
Itemized Reconciliation.
DELL INC.
Itemized Reconciliation between Net Income
on a GAAP and Non-GAAP basis
(in millions)
(unaudited)
Three Months Three Months Nine Months
Ended Ended Ended
Oct. 28, July 29, Oct. 28,
2005 2005 2005
------------ ------------ -----------
GAAP net income $606 $1,020 $2,560
Other product charges(a) 338 -- 338
Selling, general and
administrative charges(b) 104 -- 104
------------ ------------ -----------
Total non-GAAP adjustments to
net income 442 -- 442
Income tax effect on reconciling
items 104 -- 104
American Jobs Creation Act tax
adjustment(c) -- 85 85
------------ ------------ -----------
Non-GAAP net income $944 $935 $2,813
============ ============ ===========
(a) Other product charges relate to costs of servicing certain
OptiPlex systems that include a vendor part that failed to perform
to Dell's specifications of $307 million, product
rationalizations, and workforce realignment charges.
(b) Charges relate to workforce realignment expenses, primarily for
severance and related costs of $50 million, cost of operating
leases on office space no longer utilized of $25 million, and a
write-off of goodwill of $29 million.
(c) Non-GAAP results for the three month period ended July 29, 2005
and the nine month period ended October 28, 2005 exclude the
impact of an $85 million income tax benefit related to a revised
estimate of taxes on the repatriation of earnings under the
American Jobs Creation Act of 2004 recorded in the second quarter
of fiscal year 2006.
DELL INC.
Condensed Consolidated Statement of Financial Position
and Related Financial Highlights
(in millions, except for "Ratios" and "Other information")
(unaudited)
Oct. 28, July 29, Oct. 29,
2005 2005 2004
-------- -------- --------
Assets:
- -------
Current assets:
Cash and cash equivalents $6,841 $6,337 $4,525
Short-term investments 2,440 2,709 2,969
Accounts receivable, net 4,860 4,443 4,167
Inventories 582 570 415
Other 2,841 2,739 2,124
-------- -------- --------
Total current assets 17,564 16,798 14,200
Property, plant and equipment, net 1,895 1,843 1,627
Investments 2,994 3,625 4,942
Other non-current assets 421 345 285
-------- -------- --------
Total assets $22,874 $22,611 $21,054
======== ======== ========
Liabilities and Stockholders' Equity:
- -------------------------------------
Current liabilities:
Accounts payable $9,376 $9,196 $8,067
Accrued and other 5,871 5,172 4,707
-------- -------- --------
Total current liabilities 15,247 14,368 12,774
Long-term debt 504 504 505
Other non-current liabilities 2,302 2,230 1,895
-------- -------- --------
Total liabilities 18,053 17,102 15,174
Stockholders' equity 4,821 5,509 5,880
-------- -------- --------
Total liabilities
and stockholders' equity $22,874 $22,611 $21,054
======== ======== ========
Ratios:
- -------
Days supply in inventory(b) 5 5 4
Days of sales outstanding(a) 34 33 33
Days in accounts payable(b) 75 76 71
-------- -------- --------
Cash conversion cycle (36) (38) (34)
Other Information:
- ------------------
Headcount (approximate) 63,700 61,400 53,000
Average total revenue/unit
(approximate) $1,520 $1,480 $1,570
Note: Ratios are calculated based on underlying data in thousands.
(a) Days of sales outstanding includes the effect of product costs
related to in-transit customer shipments that are classified in
other current assets. For the periods ended October 28, 2005, July
29, 2005, and October 29, 2004, days of sales outstanding included
days of sales in accounts receivable and days of in-transit
customer shipments of 31 and 3 days; 30 and 3 days; and 30 and 3
days respectively.
(b) Days supply in inventory and days in accounts payable have been
calculated excluding the charges on the Itemized Reconciliation
for the period ended October 28, 2005. Days supply in inventory
calculated including the charges in cost of revenue is 4 days and
days in accounts payable including the charges is 72 days.
DELL INC.
Condensed Consolidated Statement of Cash Flows
(in millions)
(unaudited)
Three Months Nine Months
Ended Ended
------------------------
October 28, 2005
------------------------
Cash flows from operating activities:
Net income $606 $2,560
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 98 286
Tax benefits from employee stock plans 30 153
Effects of exchange rate changes on monetary
assets and liabilities denominated in
foreign currencies 9 24
Other 44 104
Changes in:
Operating working capital 247 (200)
Non-current assets and liabilities 114 330
------------ -----------
Net cash provided by operating activities 1,148 3,257
Cash flows from investing activities:
Investments:
Purchases (1,749) (4,762)
Maturities and sales 2,623 8,693
Capital expenditures (160) (507)
------------ -----------
Net cash provided by investing activities 714 3,424
Cash flows from financing activities:
Repurchase of common stock (1,450) (5,250)
Issuance of common stock
under employee plans and other 146 773
------------ -----------
Net cash used in financing activities (1,304) (4,477)
Effect of exchange rate changes
on cash and cash equivalents (54) (110)
------------ -----------
Net increase in cash and cash equivalents 504 2,094
Cash and cash equivalents at beginning
of period 6,337 4,747
------------ -----------
Cash and cash equivalents at end of period $6,841 $6,841
============ ===========
Additional supplemental information is available on our website at
http://www.dell.com/downloads/global/corporate/conferences/
q3fy06_earnings_pres.pdf
(Due to its length, this URL may need to be copied/pasted into your
Internet browser's address field. Remove the extra space if one
exists.)
CONTACT: Dell Inc., Round Rock
Media Contacts:
Jess Blackburn, 512-725-0187
jess_blackburn@dell.com
or
David Frink, 512-728-2678
david_frink@dell.com
or
Investor Contacts:
Lynn A. Tyson, 512-723-1130
lynn_tyson@dell.com
or
Robert Williams, 512-728-7570
robert_williams@dell.com