(1) Segment Results for Fiscal 2012 have been recast to conform to segment realignments that were completed during the first quarter of Fiscal 2013. See Supplemental Segment Information at the end of these financial tables for more information.
| DELL INC. | ||||||||||||
|
Condensed Consolidated Statement of Income and Related Financial Highlights (continued) |
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| (in millions, except per share data and percentages) | ||||||||||||
| (unaudited) | ||||||||||||
| Six Months Ended | % Growth Rates | |||||||||||
|
August 3,
2012 |
July 29,
2011 |
Yr. to Yr. | ||||||||||
| Net revenue | ||||||||||||
| Products | 22,826 | $ | 24,669 | (7 | )% | |||||||
| Services, including software related | 6,079 | 6,006 | 1 | % | ||||||||
| Total net revenue | 28,905 | 30,675 | (6 | )% | ||||||||
| Cost of net revenue | ||||||||||||
| Products | 18,610 | 19,371 | (4 | )% | ||||||||
| Services, including software related | 4,090 | 4,347 | (6 | )% | ||||||||
| Total cost of net revenue | 22,700 | 23,718 | (4 | )% | ||||||||
| Gross margin | 6,205 | 6,957 | (11 | )% | ||||||||
| Operating expenses | ||||||||||||
| Selling, general, and administrative | 3,985 | 4,199 | (5 | )% | ||||||||
| Research, development, and engineering | 495 | 400 | 24 | % | ||||||||
| Total operating expenses | 4,480 | 4,599 | (3 | )% | ||||||||
| Operating income | 1,725 | 2,358 | (27 | )% | ||||||||
| Interest and other, net | (95 | ) | (97 | ) | 2 | % | ||||||
| Income before income taxes | 1,630 | 2,261 | (28 | )% | ||||||||
| Income tax provision | 263 | 426 | (38 | )% | ||||||||
| Net income | 1,367 | $ | 1,835 | (26 | )% | |||||||
| Earnings per share: | ||||||||||||
| Basic | $ | 0.78 | $ | 0.97 | (20 | )% | ||||||
| Diluted | $ | 0.77 | $ | 0.97 | (21 | )% | ||||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 1,753 | 1,883 | (7 | )% | ||||||||
| Diluted | 1,764 | 1,897 | (7 | )% | ||||||||
|
Percentage of Total Net Revenue: |
||||||||||||
| Gross margin | 21.5 | % | 22.7 | % | ||||||||
| Selling, general, and administrative | 13.8 | % | 13.7 | % | ||||||||
| Research, development, and engineering | 1.7 | % | 1.3 | % | ||||||||
| Operating expenses | 15.5 | % | 15.0 | % | ||||||||
| Operating income | 6.0 | % | 7.7 | % | ||||||||
| Income before income taxes | 5.6 | % | 7.4 | % | ||||||||
| Net income | 4.7 | % | 6.0 | % | ||||||||
| Income tax rate | 16.1 | % | 18.8 | % | ||||||||
|
Net Revenue by Product Category: |
||||||||||||
| Servers and Networking | $ | 4,349 | $ | 4,027 | 8 | % | ||||||
| Storage | 879 | 983 | (11 | )% | ||||||||
| Services | 4,177 | 4,020 | 4 | % | ||||||||
| Software and Peripherals | 4,724 | 5,136 | (8 | )% | ||||||||
| Mobility | 8,106 | 9,477 | (14 | )% | ||||||||
| Desktop PCs | 6,670 | 7,032 | (5 | )% | ||||||||
| Consolidated net revenue | $ | 28,905 | $ | 30,675 | (6 | )% | ||||||
|
Percent of Total Net Revenue: |
||||||||||||
| Servers and Networking | 15 | % | 13 | % | ||||||||
| Storage | 3 | % | 3 | % | ||||||||
| Services | 15 | % | 13 | % | ||||||||
| Software and Peripherals | 16 | % | 17 | % | ||||||||
| Mobility | 28 | % | 31 | % | ||||||||
| Desktop PCs | 23 | % | 23 | % | ||||||||
|
Net Revenue by Global Segment: (1) |
||||||||||||
| Large Enterprise | 8,972 | $ | 9,264 | (3 | )% | |||||||
| Public | 7,531 | 7,950 | (5 | )% | ||||||||
| Small and Medium Business | 6,735 | 6,661 | 1 | % | ||||||||
| Consumer | 5,667 | 6,800 | (17 | )% | ||||||||
| Consolidated net revenue | $ | 28,905 | $ | 30,675 | (6 | )% | ||||||
|
Percentage of Total Net Revenue: (1) |
||||||||||||
| Large Enterprise | 31 | % | 30 | % | ||||||||
| Public | 26 | % | 26 | % | ||||||||
| Small and Medium Business | 23 | % | 22 | % | ||||||||
| Consumer | 20 | % | 22 | % | ||||||||
|
Consolidated Operating Income: (1) |
||||||||||||
| Large Enterprise | $ | 835 | $ | 976 | ||||||||
| Public | 650 | 818 | ||||||||||
| Small and Medium Business | 771 | 815 | ||||||||||
| Consumer | 46 | 273 | ||||||||||
| Segment operating income | 2,302 | 2,882 | ||||||||||
| Broad based long-term incentives | (169 | ) | (178 | ) | ||||||||
| Amortization of intangible assets | (260 | ) | (187 | ) | ||||||||
| Severance and facility actions and acquisition-related costs | (148 | ) | (159 | ) | ||||||||
| Consolidated operating income | $ | 1,725 | $ | 2,358 | ||||||||
Note: Percentage growth rates and ratios are calculated based on
underlying data in thousands.
