DELL INC. | |||||||||||||
Condensed Consolidated Statement of Income and Related Financial Highlights | |||||||||||||
(in millions, except per share data and percentages) | |||||||||||||
(unaudited) | |||||||||||||
Fiscal Year Ended | % Growth Rates | ||||||||||||
January 28, | January 29, | ||||||||||||
2011(1) |
2010(1) |
Yr. to Yr. | |||||||||||
Net revenue | |||||||||||||
Products | $ | 50,002 | $ | 43,697 | 14 | % | |||||||
Services, including software related | 11,492 | 9,205 | 25 | % | |||||||||
Net revenue | 61,494 | 52,902 | 16 | % | |||||||||
Cost of net revenue | |||||||||||||
Products | 42,068 | 37,534 | 12 | % | |||||||||
Services, including software related | 8,030 | 6,107 | 31 | % | |||||||||
Total cost of net revenue | 50,098 | 43,641 | 15 | % | |||||||||
Gross margin | 11,396 | 9,261 | 23 | % | |||||||||
Selling, general and administrative | 7,302 | 6,465 | 13 | % | |||||||||
Research, development and engineering | 661 | 624 | 6 | % | |||||||||
Total operating expenses | 7,963 | 7,089 | 12 | % | |||||||||
Operating income | 3,433 | 2,172 | 58 | % | |||||||||
Interest and other, net (2) | (83 | ) | (148 | ) | 44 | % | |||||||
Income before income taxes | 3,350 | 2,024 | 66 | % | |||||||||
Income tax provision | 715 | 591 | 21 | % | |||||||||
Net income | $ | 2,635 | $ | 1,433 | 84 | % | |||||||
Earnings per share: | |||||||||||||
Basic | $ | 1.36 | $ | 0.73 | 86 | % | |||||||
Diluted | $ | 1.35 | $ | 0.73 | 85 | % | |||||||
Weighted average shares outstanding: | |||||||||||||
Basic | 1,944 | 1,954 | (1 | %) | |||||||||
Diluted | 1,955 | 1,962 | (0 | %) | |||||||||
Percentage of Total Net Revenue: |
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Gross margin | 18.5 | % | 17.5 | % | |||||||||
Selling, general and administrative | 11.9 | % | 12.2 | % | |||||||||
Research and development | 1.0 | % | 1.2 | % | |||||||||
Operating expenses | 12.9 | % | 13.4 | % | |||||||||
Operating income | 5.6 | % | 4.1 | % | |||||||||
Income before income taxes | 5.4 | % | 3.8 | % | |||||||||
Net income | 4.3 | % | 2.7 | % | |||||||||
Income tax rate | 21.3 | % | 29.2 | % | |||||||||
Net Revenue by Product Category: |
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Servers and Networking | $ | 7,609 | $ | 6,032 | 26 | % | |||||||
Storage | 2,295 | 2,192 | 5 | % | |||||||||
Services (1) | 7,673 | 5,622 | 36 | % | |||||||||
Software and Peripherals | 10,261 | 9,499 | 8 | % | |||||||||
Mobility | 18,971 | 16,610 | 14 | % | |||||||||
Desktop PCs | 14,685 | 12,947 | 13 | % | |||||||||
Consolidated net revenue | $ | 61,494 | $ | 52,902 | 16 | % | |||||||
Percentage of Total Net Revenue: |
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Servers and Networking | 12 | % | 11 | % | |||||||||
Storage | 4 | % | 4 | % | |||||||||
Services (1) | 12 | % | 11 | % | |||||||||
Software and Peripherals | 17 | % | 18 | % | |||||||||
Mobility | 31 | % | 31 | % | |||||||||
Desktop PCs | 24 | % | 25 | % | |||||||||
Net Revenue by Global Segment: |
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Large Enterprise | $ | 17,813 | $ | 14,285 | 25 | % | |||||||
Public | 16,851 | 14,484 | 16 | % | |||||||||
Small and Medium Business | 14,473 | 12,079 | 20 | % | |||||||||
Consumer | 12,357 | 12,054 | 3 | % | |||||||||
Consolidated net revenue | $ | 61,494 | $ | 52,902 | 16 | % | |||||||
Percentage of Total Net Revenue: |
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Large Enterprise | 29 | % | 27 | % | |||||||||
Public | 27 | % | 27 | % | |||||||||
Small and Medium Business | 24 | % | 23 | % | |||||||||
Consumer | 20 | % | 23 | % | |||||||||
Consolidated Operating Income: |
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Large Enterprise | $ | 1,473 | $ | 819 | |||||||||
Public | 1,484 | 1,361 | |||||||||||
Small and Medium Business | 1,477 | 1,040 | |||||||||||
Consumer | 65 | 107 | |||||||||||
Consolidated segment operating income | 4,499 | 3,327 | |||||||||||
Severance and facility actions | (129 | ) | (481 | ) | |||||||||
Broad based long-term incentives | (350 | ) | (353 | ) | |||||||||
Amortization of intangible assets | (349 | ) | (205 | ) | |||||||||
Acquisition-related | (98 | ) | (116 | ) | |||||||||
Other (3) | (140 | ) | - | ||||||||||
Consolidated operating income | $ | 3,433 | $ | 2,172 | |||||||||
Note: Percentage growth rates and ratios are calculated based on underlying data in thousands. | |||||||||||||
(1) Includes the results of Perot Systems Corporation ("Perot Systems"), which was acquired on November 3, 2009. |
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(2) Interest and other, net for the fiscal year ended January 28, 2011 includes Dell’s receipt of a $72 million merger termination fee. |
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(3) Other for the fiscal year ended January 28, 2011 includes amounts for the $100 million settlement of the SEC investigation and a $40 million settlement for a securities litigation matter. |
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