DELL INC. | |||||||||||
Condensed Consolidated Statement of Income and Related Financial Highlights | |||||||||||
(in millions, except per share data and percentages) | |||||||||||
(unaudited) | |||||||||||
Nine Months Ended | % Growth Rates | ||||||||||
October 28, | October 29, | ||||||||||
2011 | 2010 | Yr. to Yr. | |||||||||
Net revenue | |||||||||||
Products | $ | 36,981 | $ | 37,251 | (1 | %) | |||||
Services, including software related | 9,059 | 8,551 | 6 | % | |||||||
Net revenue |
46,040 | 45,802 | 1 | % | |||||||
Cost of net revenue | |||||||||||
Products | 29,168 | 31,731 | (8 | %) | |||||||
Services, including software related | 6,446 | 5,966 | 8 | % | |||||||
Total cost of net revenue | 35,614 | 37,697 | (6 | %) | |||||||
Gross margin | 10,426 | 8,105 | 29 | % | |||||||
Selling, general and administrative | 6,306 | 5,325 | 18 | % | |||||||
Research, development and engineering | 620 | 492 | 26 | % | |||||||
Total operating expenses | 6,926 | 5,817 | 19 | % | |||||||
Operating income | 3,500 | 2,288 | 53 | % | |||||||
Interest and other, net (1) | (167 | ) | (65 | ) | (157 | %) | |||||
Income before income taxes | 3,333 | 2,223 | 50 | % | |||||||
Income tax provision | 605 | 515 | 17 | % | |||||||
Net income | $ | 2,728 | $ | 1,708 | 60 | % | |||||
Earnings per share: | |||||||||||
Basic | $ | 1.47 | $ | 0.88 | 67 | % | |||||
Diluted | $ | 1.46 | $ | 0.87 | 68 | % | |||||
Weighted average shares outstanding: | |||||||||||
Basic | 1,860 | 1,950 | (5 | %) | |||||||
Diluted | 1,874 | 1,961 | (4 | %) | |||||||
Percentage of Total Net Revenue: |
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Gross margin | 22.6 | % | 17.7 | % | |||||||
Selling, general and administrative | 13.7 | % | 11.6 | % | |||||||
Research and development | 1.3 | % | 1.1 | % | |||||||
Operating expenses | 15.0 | % | 12.7 | % | |||||||
Operating income | 7.6 | % | 5.0 | % | |||||||
Income before income taxes | 7.2 | % | 4.9 | % | |||||||
Net income | 5.9 | % | 3.7 | % | |||||||
Income tax rate | 18.2 | % | 23.2 | % | |||||||
Net Revenue by Product Category: |
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Servers and Networking | $ | 6,116 | $ | 5,519 | 11 | % | |||||
Storage | 1,443 | 1,721 | (16 | %) | |||||||
Services | 6,143 | 5,730 | 7 | % | |||||||
Software and Peripherals | 7,664 | 7,610 | 1 | % | |||||||
Mobility | 14,227 | 14,121 | 1 | % | |||||||
Desktop PCs | 10,447 | 11,101 | (6 | %) | |||||||
Consolidated net revenue | $ | 46,040 | $ | 45,802 | 1 | % | |||||
Percentage of Total Net Revenue: |
|||||||||||
Servers and Networking | 13 | % | 12 | % | |||||||
Storage | 3 | % | 4 | % | |||||||
Services | 13 | % | 12 | % | |||||||
Software and Peripherals | 17 | % | 17 | % | |||||||
Mobility | 31 | % | 31 | % | |||||||
Desktop PCs | 23 | % | 24 | % | |||||||
Net Revenue by Global Segment: |
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Large Enterprise | $ | 13,548 | $ | 13,121 | 3 | % | |||||
Public | 12,599 | 12,878 | (2 | %) | |||||||
Small and Medium Business | 11,189 | 10,724 | 4 | % | |||||||
Consumer | 8,704 | 9,079 | (4 | %) | |||||||
Consolidated net revenue | $ | 46,040 | $ | 45,802 | 1 | % | |||||
Percentage of Total Net Revenue: |
|||||||||||
Large Enterprise | 30 | % | 29 | % | |||||||
Public | 27 | % | 28 | % | |||||||
Small and Medium Business | 24 | % | 23 | % | |||||||
Consumer | 19 | % | 20 | % | |||||||
Consolidated Operating Income: |
|||||||||||
Large Enterprise | $ | 1,393 | $ | 971 | |||||||
Public | 1,317 | 1,118 | |||||||||
Small and Medium Business | 1,253 | 1,027 | |||||||||
Consumer | 285 | (4 | ) | ||||||||
Segment operating income | 4,248 | 3,112 | |||||||||
Severance and facility actions | (19 | ) | (112 | ) | |||||||
Broad based long-term incentives | (256 | ) | (249 | ) | |||||||
Amortization of intangible assets | (287 | ) | (264 | ) | |||||||
Acquisition-related | (186 | ) | (59 | ) | |||||||
Other (2) | - | (140 | ) | ||||||||
Consolidated operating income | $ | 3,500 | $ | 2,288 | |||||||
Note: Percentage growth rates and ratios are calculated based on underlying data in thousands. | |||||||||||