Comments
yourfanat wrote: I am using another tool for Oracle developers - dbForge Studio for Oracle. This IDE has lots of usefull features, among them: oracle designer, code competion and formatter, query builder, debugger, profiler, erxport/import, reports and many others. The latest version supports Oracle 12C. More information here.

2008 West
DIAMOND SPONSOR:
Data Direct
SOA, WOA and Cloud Computing: The New Frontier for Data Services
PLATINUM SPONSORS:
Red Hat
The Opening of Virtualization
GOLD SPONSORS:
Appsense
User Environment Management – The Third Layer of the Desktop
Cordys
Cloud Computing for Business Agility
EMC
CMIS: A Multi-Vendor Proposal for a Service-Based Content Management Interoperability Standard
Freedom OSS
Practical SOA” Max Yankelevich
Intel
Architecting an Enterprise Service Router (ESR) – A Cost-Effective Way to Scale SOA Across the Enterprise
Sensedia
Return on Assests: Bringing Visibility to your SOA Strategy
Symantec
Managing Hybrid Endpoint Environments
VMWare
Game-Changing Technology for Enterprise Clouds and Applications
Click For 2008 West
Event Webcasts

2008 West
PLATINUM SPONSORS:
Appcelerator
Get ‘Rich’ Quick: Rapid Prototyping for RIA with ZERO Server Code
Keynote Systems
Designing for and Managing Performance in the New Frontier of Rich Internet Applications
GOLD SPONSORS:
ICEsoft
How Can AJAX Improve Homeland Security?
Isomorphic
Beyond Widgets: What a RIA Platform Should Offer
Oracle
REAs: Rich Enterprise Applications
Click For 2008 Event Webcasts
SYS-CON.TV
Today's Top SOA Links


Dell Reports Third Quarter Financial Results

Dell announced fiscal 2013 third-quarter results today with revenue of $13.7 billion, GAAP operating income of $589 million, and GAAP earnings of $0.27 per share. Dell’s enterprise solution strategy continued to show positive results with server and networking revenue increasing 11 percent year over year.

“We are consistently executing our end-to-end solutions strategy for the benefit of our customers,” said Michael Dell, Chairman and CEO. “In the quarter, we completed the acquisition of Quest Software which – along with other recent acquisitions like SonicWALL and Wyse – adds leading management, security, virtualization and cloud capabilities to our expanding portfolio of powerful solutions.”

“In a difficult global IT spending environment we saw solid proof points that demonstrate progress in our strategy,” said Brian Gladden, Dell CFO. “A highlight has been the strong progress of our newly introduced servers, with our server and networking business up 11 percent. We’re also encouraged by early interest in our new Windows 8 touch portfolio and the opportunities it creates for our commercial and consumer businesses.”

Mr. Gladden added that strong cash flow from operations generated over the past two years continued with $1.3 billion in the quarter and, combined with a strong cash position this fiscal year, helped enable Dell to invest in new capabilities and return almost $900 million year to date to shareholders through the company’s recently adopted dividend and share repurchases.

Results

  • Revenue in the quarter was $13.7 billion, an 11 percent decrease from the previous year as desktop and mobility revenue contracted.
  • GAAP operating income for the quarter was $589 million, or 4.3 percent of revenue. Non-GAAP operating income was $886 million, or 6.5 percent of revenue.
  • GAAP earnings per share in the quarter was 27 cents, down 45 percent from the previous year; non-GAAP EPS was 39 cents, down 28 percent.
  • Cash flow from operations in the quarter was $1.3 billion. Dell ended the quarter with $14.2 billion in cash and investments.

Fiscal-Year 2013 Third Quarter and Year-to-Date Highlights

 

Third Quarter

 

Fiscal Year To Date

(in millions)

FY13

 

FY12

 

Change

FY13

 

FY12

 

Change

Revenue $ 13,721   $ 15,365   (11 %) $ 42,626   $ 46,040   (7 %)
 
Operating Income (GAAP) $ 589 $ 1,142 (48 %) $ 2,314 $ 3,500 (34 %)
Net Income (GAAP) $ 475 $ 893 (47 %) $ 1,842 $ 2,728 (32 %)
EPS (GAAP) $ 0.27 $ 0.49 (45 %) $ 1.05 $ 1.46 (28 %)
 
Operating Income (non-GAAP) $ 886 $ 1,288 (31 %) $ 3,019 $ 3,992 (24 %)
Net Income (non-GAAP) $ 679 $ 983 (31 %) $ 2,315 $ 3,039 (24 %)
EPS (non-GAAP) $ 0.39 $ 0.54 (28 %) $ 1.32 $ 1.62 (19 %)

Information about Dell’s use of non-GAAP financial information is provided under “Non-GAAP Financial Measures” below. Non-GAAP financial information excludes costs related primarily to the amortization of purchased intangibles, severance and facility-action costs, certain settlement costs and acquisition-related charges. All comparisons in this press release are year over year unless otherwise noted.

Strategic Highlights:

  • Dell Enterprise Solutions and Services revenue grew 3 percent year over year to $4.8 billion. The company year to date is 4 percent ahead of last year’s ES&S revenue at $14.2 billion, accounting for greater than 50 percent of the company’s gross margin thus far this year. The ES&S business is on an annual run-rate approaching $20 billion.
  • Server and networking revenue for the quarter grew 11 percent. Dell was the only top-3 server provider to have positive unit growth in the quarter. Dell’s server growth was driven by its new, 12th-Generation line, leadership in hyper-scale infrastructure solutions and an increase in customer adoption of cloud solutions for their IT requirements. Dell’s differentiated intellectual property and solutions have resulted in solid growth in this business.
  • Dell’s Services business continues to execute well, with gross margin percentages improving sequentially for the sixth consecutive quarter, as the company focuses on the most profitable areas of the business. Growth in support, deployment and security services highlighted the quarter.

Business Units and Regions:

  • Large Enterprise revenue was $4.2 billion in the quarter, an 8 percent decline. Operating income was $325 million, or 7.8 percent of revenue.
  • Public revenue was $3.8 billion, an 11 percent decrease. Operating income for the quarter was $352 million, or 9.2 percent of revenue.
  • Small and Medium Business revenue was $3.3 billion, a 1 percent decline. Operating income was $349 million, or 10.6 percent of revenue.
  • Consumer revenue was $2.5 billion, a 23 percent decline. Operating loss was $65 million or minus 2.7 percent of revenue.
  • Revenue in Americas was down 9 percent; Asia-Pacific and Japan was down 11 percent; and EMEA was down 15 percent.

Company Outlook:

Dell sees the challenging global macro-economic environment continuing in the fourth quarter, which will continue to impact the company’s results. The company expects sequential revenue growth of 2 to 5 percent. For the full year, Dell maintains its expectation for at least $1.70 in earnings per share on a non-GAAP basis. Going forward, the company is committed to its end-to-end solutions strategy and creating value over the long term.

About Dell

Dell Inc. (NASDAQ: DELL) listens to customers and delivers worldwide innovative technology, business solutions and services they trust and value. For more information, visit www.dell.com. The third-quarter analyst call with Michael Dell, chairman and CEO, Brian Gladden, CFO, and, Steve Felice, Chief Commercial Officer, will be webcast live today at 4 p.m. CST and archived at www.dell.com/investor. To monitor highlighted facts from the analyst call, follow on the Dell Investor Relations Twitter account at: http://twitter.com/dellshares or hashtag #DellEarnings. To communicate directly with Dell, go to www.dell.com/dellshares.

Segment Realignment:

In the first quarter of Fiscal 2013, Dell made certain segment realignments in order to conform to the way Dell internally manages segment performance. These realignments affected all of Dell's operating segments, but primarily consisted of the transfer of small office business customers from the Small and Medium Business segment to the Consumer Segment. Dell has recast prior period amounts to provide visibility and comparability. None of these changes impacts Dell's previously reported consolidated net revenue, gross margin, operating income, net income, or earnings per share.

Non-GAAP Financial Measures:

This press release includes information about non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per share (collectively with non-GAAP gross margin and non-GAAP operating expenses, the “non-GAAP financial measures”), which are not measurements of financial performance prepared in accordance with U.S. generally accepted accounting principles. In the following tables, Dell has provided a reconciliation of each historical non-GAAP financial measure to the most directly comparable GAAP financial measure under the heading “Reconciliation of Non-GAAP Financial Measures.” Dell encourages investors to review the reconciliation in conjunction with Dell’s presentation of these non-GAAP financial measures.

Special Note on Forward Looking Statements:

Statements in this press release that relate to future results and events (including statements about Dell’s future financial and operating performance, trends relating to macroeconomic challenges and the IT spending environment, effects of our acquisitions, our server business, our dividends and share repurchases, and consumer demand relating to Windows 8, as well as the financial guidance with respect to revenue and earnings per share) are forward-looking statements and are based on Dell's current expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “confidence,” “may,” “plan,” “potential,” “should,” “will” and “would,” or similar expressions. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors, including: intense competition; Dell’s reliance on third-party suppliers for product components, including reliance on several single-sourced or limited-sourced suppliers; Dell’s ability to achieve favorable pricing from its vendors; weak global economic conditions and instability in financial markets; Dell’s ability to manage effectively the change involved in implementing strategic initiatives; successful implementation of Dell’s acquisition strategy; Dell’s cost-efficiency measures; Dell’s ability to effectively manage periodic product and services transitions; Dell’s ability to deliver consistent quality products and services; Dell’s ability to generate substantial non-U.S. net revenue; Dell’s product, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell’s sales channel partners; access to the capital markets by Dell or its customers; weak economic conditions and additional regulation affecting our financial services activities; counterparty default; customer terminations of or pricing changes in services contracts, or Dell’s failure to perform as it anticipates at the time it enters into services contracts; loss of government contracts; Dell’s ability to obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; infrastructure disruptions; cyber-attacks or other data security breaches; Dell’s ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; Dell’s ability to attract, retain, and motivate key personnel; Dell’s ability to maintain strong internal controls; changing environmental and safety laws; the effect of armed hostilities, terrorism, natural disasters, and public health issues; and other risks and uncertainties discussed in Dell’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for its fiscal year ended February 3, 2012. In particular, Dell’s expectations with regard to sequential revenue and earnings per share for the full fiscal year ending Feb. 1, 2013 assume, among other matters, that there is no significant decline in economic conditions generally or demand growth specifically, that macroeconomic challenges do not materialize into more significant economic difficulties, no significant change in seasonality patterns, continued strength in server, storage and network products and continued geographic customer demand trends. Dell assumes no obligation to update its forward-looking statements.

Consolidated statements of income, financial position and cash flows and other financial data 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 and percentages; percentage growth rates and ratios are calculated based on underlying data in thousands)

(unaudited)

         
Three Months Ended % Growth Rates
November 2, August 3, October 28,

2012 (1)

2012 (1)

2011

Sequential   Yr. to Yr.
Net revenue
Products $ 10,706 $ 11,403 $ 12,312 (6 )% (13 )%
Services, including software related   3,015     3,080     3,053   (2 )% (1 )%
Total net revenue   13,721     14,483     15,365   (5 )% (11 )%
Cost of net revenue
Products 8,904 9,280 9,797 (4 )% (9 )%
Services, including software related   1,945     2,065     2,099   (6 )% (7 )%
Total cost of net revenue   10,849     11,345     11,896   (4 )% (9 )%
Gross margin 2,872 3,138 3,469 (8 )% (17 )%
Operating expenses
Selling, general, and administrative 2,013 1,976 2,107 2 % (4 )%
Research, development, and engineering   270     261     220   3 % 23 %
Total operating expenses   2,283     2,237     2,327   2 % (2 )%
Operating income 589 901 1,142 (35 )% (48 )%
Interest and other, net   (38 )   (63 )   (70 ) 41 % 46 %
Income before income taxes 551 838 1,072 (34 )% (49 )%
Income tax provision   76     106     179   (28 )% (57 )%
Net income $ 475   $ 732   $ 893   (35 )% (47 )%
Earnings per share:
Basic $ 0.27   $ 0.42   $ 0.49   (36 )% (45 )%
Diluted $ 0.27   $ 0.42   $ 0.49   (36 )% (45 )%
Cash dividends declared per common share $ 0.08 $ $
Weighted average shares outstanding:
Basic 1,735 1,747 1,813 (1 )% (4 )%
Diluted 1,742 1,753 1,828 (1 )% (5 )%
 

Percentage of Total Net Revenue:

Gross margin 20.9 % 21.6 % 22.6 %
Selling, general, and administrative 14.7 % 13.6 % 13.8 %
Research, development, and engineering 1.9 % 1.8 % 1.4 %
Operating expenses 16.6 % 15.4 % 15.2 %
Operating income 4.3 % 6.2 % 7.4 %
Income before income taxes 4.0 % 5.8 % 7.0 %
Net income 3.5 % 5.1 % 5.8 %
Income tax rate 13.8 % 12.7 % 16.7 %
 

Net Revenue by Product Category:

Servers and Networking (1) $ 2,322 $ 2,332 $ 2,089 % 11 %
Storage 386 435 460 (11 )% (16 )%
Services 2,107 2,106 2,123 % (1 )%
Software and Peripherals 2,258 2,338 2,528 (3 )% (11 )%
Mobility 3,523 3,870 4,750 (9 )% (26 )%
Desktop PCs   3,125     3,402     3,415   (8 )% (8 )%
Consolidated net revenue $ 13,721   $ 14,483   $ 15,365   (5 )% (11 )%
 

Percent of Total Net Revenue:

Servers and Networking (1) 17 % 16 % 14 %
Storage 3 % 3 % 3 %
Services 15 % 15 % 14 %
Software and Peripherals 16 % 16 % 16 %
Mobility 26 % 27 % 31 %
Desktop PCs 23 % 23 % 22 %
 

Net Revenue by Global Segment: (2)

Large Enterprise $ 4,156 $ 4,536 $ 4,540 (8 )% (8 )%
Public 3,824 4,065 4,287 (6 )% (11 )%
Small and Medium Business 3,282 3,258 3,326 1 % (1 )%
Consumer   2,459     2,624     3,212   (6 )% (23 )%
Consolidated net revenue $ 13,721   $ 14,483   $ 15,365   (5 )% (11 )%
 

Percentage of Total Net Revenue: (2)

Large Enterprise 30 % 31 % 29 %
Public 28 % 28 % 28 %
Small and Medium Business 24 % 23 % 22 %
Consumer 18 % 18 % 21 %
 

Consolidated Operating Income: (2)

Large Enterprise $ 325 $ 433 $ 446
Public 352 379 454
Small and Medium Business 349 382 367
Consumer   (65 )   14     99  
Segment operating income 961 1,208 1,366
Broad based long-term incentives (75 ) (85 ) (78 )
Amortization of intangible assets (165 ) (150 ) (100 )
Severance and facility actions and acquisition-related costs   (132 )   (72 )   (46 )
Consolidated operating income $ 589   $ 901   $ 1,142  

(1) Includes the results of Dell's Fiscal 2013 acquisitions from their respective acquisition dates. Servers and Networking includes our Fiscal 2013 Software acquisitions (Quest Software, SonicWALL, and AppAssure).

(2) 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)

(in millions, except per share data and percentages; percentage growth rates and ratios are calculated based on underlying data in thousands)

(unaudited)

 
Nine Months Ended % Growth Rates
November 2, October 28,

2012(1)

2011 Yr. to Yr.
Net revenue
Products $ 33,532 $ 36,981 (9 )%
Services, including software related   9,094     9,059   %
Total net revenue   42,626     46,040   (7 )%
Cost of net revenue
Products 27,514 29,168 (6 )%
Services, including software related   6,035     6,446   (6 )%
Total cost of net revenue   33,549     35,614   (6 )%
Gross margin 9,077 10,426 (13 )%
Operating expenses
Selling, general, and administrative 5,998 6,306 (5 )%
Research, development, and engineering   765     620   23 %
Total operating expenses   6,763     6,926   (2 )%
Operating income 2,314 3,500 (34 )%
Interest and other, net   (133 )   (167 ) 20 %
Income before income taxes 2,181 3,333 (35 )%
Income tax provision   339     605   (44 )%
Net income $ 1,842   $ 2,728   (32 )%
Earnings per share:
Basic $ 1.05   $ 1.47   (29 )%
Diluted $ 1.05   $ 1.46   (28 )%
Cash dividends declared per common share $ 0.08 $
Weighted average shares outstanding:
Basic 1,747 1,860 (6 )%
Diluted 1,757 1,874 (6 )%
 

Percentage of Total Net Revenue:

Gross margin 21.3 % 22.6 %
Selling, general, and administrative 14.1 % 13.7 %
Research, development, and engineering 1.8 % 1.3 %
Operating expenses 15.9 % 15.0 %
Operating income 5.4 % 7.6 %
Income before income taxes 5.1 % 7.2 %
Net income 4.3 % 5.9 %
Income tax rate 15.5 % 18.2 %
 

Net Revenue by Product Category:

Servers and Networking (1) $ 6,671 $ 6,116 9 %
Storage 1,265 1,443 (12 )%
Services 6,284 6,143 2 %
Software and Peripherals 6,982 7,664 (9 )%
Mobility 11,629 14,227 (18 )%
Desktop PCs   9,795     10,447   (6 )%
Consolidated net revenue $ 42,626   $ 46,040   (7 )%
 

Percent of Total Net Revenue:

Servers and Networking (1) 16 % 13 %
Storage 3 % 3 %
Services 15 % 13 %
Software and Peripherals 16 % 17 %
Mobility 27 % 31 %
Desktop PCs 23 % 23 %
 

Net Revenue by Global Segment: (2)

Large Enterprise $ 13,128 $ 13,804 (5 )%
Public 11,355 12,237 (7 )%
Small and Medium Business 10,017 9,987 %
Consumer   8,126     10,012   (19 )%
Consolidated net revenue $ 42,626   $ 46,040   (7 )%
 

Percentage of Total Net Revenue: (2)

Large Enterprise 31 % 30 %
Public 27 % 26 %
Small and Medium Business 23 % 22 %
Consumer 19 % 22 %
 

Consolidated Operating Income: (2)

Large Enterprise $ 1,160 $ 1,422
Public 1,002 1,272
Small and Medium Business 1,120 1,182
Consumer   (19 )   372  
Segment operating income 3,263 4,248
Broad based long-term incentives (244 ) (256 )
Amortization of intangible assets (425 ) (287 )
Severance and facility actions and acquisition-related costs   (280 )   (205 )
Consolidated operating income $ 2,314   $ 3,500  

(1) Includes the results of Dell's Fiscal 2013 acquisitions from their respective acquisition dates. Servers and Networking includes our Fiscal 2013 Software acquisitions (Quest Software, SonicWALL, and AppAssure).

(2) 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 Financial Position and Related Financial Highlights

(in millions, except for ratios; ratios are calculated based on underlying data in thousands)

(unaudited)

 
November 2, August 3, October 28,
2012 2012 2011

Assets:

Current assets:
Cash and cash equivalents $ 10,991 $ 11,519 $ 13,293
Short-term investments 281 372 545
Accounts receivable, net 6,187 6,829 6,690
Short-term financing receivables, net 3,151 3,174 3,326
Inventories, net 1,364 1,615 1,397
Other current assets   3,688     3,741     3,005  
Total current assets 25,662 27,250 28,256
Property, plant, and equipment, net 2,156 2,058 2,123
Long-term investments 2,908 2,738 2,183
Long-term financing receivables, net 1,354 1,344 1,279
Goodwill 9,191 7,558 5,943
Purchased intangible assets, net 3,511 2,609 1,957
Other non-current assets   664     540     302  
Total assets $ 45,446   $ 44,097   $ 42,043  
 

Liabilities and Stockholders' Equity:

Current liabilities:
Short-term debt $ 3,724 $ 2,609 $ 1,831
Accounts payable 10,556 11,193 11,107
Accrued and other 3,504 3,227 3,816
Short-term deferred services revenue   4,027     3,683     3,465  
Total current liabilities 21,811 20,712 20,219
Long-term debt 5,310 5,832 6,430
Long-term deferred services revenue 3,943 3,893 3,744
Other non-current liabilities   4,184     3,914     2,987  
Total liabilities   35,248     34,351     33,380  
Total Dell stockholders' equity 10,177 9,746 8,663
Noncontrolling interest   21          
Total stockholders' equity   10,198     9,746     8,663  
Total liabilities and equity $ 45,446   $ 44,097   $ 42,043  
 

Ratios:

Days of sales outstanding (1) 45 46 42
Days supply in inventory 11 13 11
Days in accounts payable   (88 )   (89 )   (84 )
Cash conversion cycle   (32 )   (30 )   (31 )
 
Average total revenue/unit (approximate) $ 1,410 $ 1,390 $ 1,390

(1) Days of sales outstanding ("DSO") is based on the ending net trade receivables and most recent quarterly revenue for each period. DSO includes the effect of product costs related to customer shipments not yet recognized as revenue that are classified as other current assets. At November 2, 2012, August 3, 2012, and October 28, 2011, DSO and days of customer shipments not yet recognized were 41 and 4 days, 42 and 4 days, and 39 and 3 days, respectively.

       
 
DELL INC.

Condensed Consolidated Statements of Cash Flows

(in millions, unaudited)

 
Three Months Ended Nine Months Ended
November 2, October 28, November 2, October 28,
2012 2011 2012 2011
Cash flows from operating activities:
Net income $ 475 $ 893 $ 1,842 $ 2,728
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 294 241 823 687
Stock-based compensation 84 80 276 261
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies (10 ) 15 (19 )
Deferred income taxes (59 ) (35 ) (107 ) (91 )
Provision for doubtful accounts — including financing receivables 64 50 185 167
Other 10 46 22 46
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable 766 (95 ) 294 (190 )
Financing receivables (62 ) (83 ) (51 ) (162 )
Inventories 257 (15 ) 67 (46 )
Other assets (138 ) 16 (334 ) 223
Accounts payable (664 ) (492 ) (1,104 ) (231 )
Deferred services revenue 63 137 204 540
Accrued and other liabilities   253     118     (290 )   (223 )
Change in cash from operating activities   1,343     851     1,842     3,690  
Cash flows from investing activities:
Investments:
Purchases (641 ) (1,638 ) (1,831 ) (2,419 )
Maturities and sales 716 424 3,156 856
Capital expenditures (121 ) (214 ) (383 ) (510 )
Proceeds from sale of facilities, land, and other assets 47 81 12
Collections on purchased financing receivables 34 69 136 204
Acquisition of business, net of cash received   (2,297 )   (663 )   (4,708 )   (2,564 )
Change in cash from investing activities   (2,262 )   (2,022 )   (3,549 )   (4,421 )
Cash flows from financing activities:
Repurchase of common stock (600 ) (724 ) (2,180 )
Cash dividends paid (139 ) (139 )
Issuance of common stock under employee plans 5 5 49 34
Issuance (repayment) of commercial paper (maturity 90 days or less), net (430 ) (292 )
Proceeds from debt 1,639 884 2,790 3,317
Repayments of debt (718 ) (362 ) (2,822 ) (1,055 )
Other       1     8     3  
Change in cash from financing activities   357     (72 )   (1,130 )   119  
Effect of exchange rate changes on cash and cash equivalents   34     (87 )   (24 )   (8 )
Change in cash and cash equivalents (528 ) (1,330 ) (2,861 ) (620 )
Cash and cash equivalents at beginning of the period   11,519     14,623     13,852     13,913  
Cash and cash equivalents at end of the period $ 10,991   $ 13,293   $ 10,991   $ 13,293  
 
 

SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES

The following tables include information about non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per share (collectively, the “non-GAAP financial measures”), which are not measurements of financial performance prepared in accordance with U.S. generally accepted accounting principles. Dell has provided a reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measures in the below tables. A detailed discussion of Dell's reasons for including the non-GAAP financial measures and the limitations associated with those measures is presented in "Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Non-GAAP Financial Measures" in Dell's annual report on Form 10-K for the financial year ended February 3, 2012. Dell encourages investors to review the historical reconciliation and the non-GAAP discussion in conjunction with the presentation of non-GAAP financial measures.

         
 
DELL INC.

Reconciliation of Non-GAAP Financial Measures

(in millions, except per share data and percentages; percentage growth rates and ratios are calculated based on underlying data in thousands)

(unaudited)

 
Three Months Ended % Growth Rates
November 2,

August 3,

October 28,

2012 (1)

2012 (1)

2011

Sequential   Yr. to Yr.
GAAP gross margin $ 2,872 $ 3,138 $ 3,469 (8 )% (17 )%
Non-GAAP adjustments:
Amortization of intangibles 120 109 77
Severance and facility actions and acquisition-related costs   21     23      
Non-GAAP gross margin $ 3,013   $ 3,270   $ 3,546   (8 )% (15 )%
 
GAAP operating expenses $ 2,283 $ 2,237 $ 2,327 2 % (2 )%
Non-GAAP adjustments:
Amortization of intangibles (45 ) (41 ) (23 )
Severance and facility actions and acquisition-related costs   (111 )   (49 )   (46 )
Non-GAAP operating expenses $ 2,127   $ 2,147   $ 2,258   (1 )% (6 )%
 
GAAP operating income $ 589 $ 901 $ 1,142 (35 )% (48 )%
Non-GAAP adjustments:
Amortization of intangibles 165 150 100
Severance and facility actions and acquisition-related costs   132     72     46  
Non-GAAP operating income $ 886   $ 1,123   $ 1,288   (21 )% (31 )%
 
GAAP net income $ 475 $ 732 $ 893 (35 )% (47 )%
Non-GAAP adjustments:
Amortization of intangibles 165 150 100
Severance and facility actions and acquisition-related costs 132 72 46
Aggregate adjustment for income taxes   (93 )   (79 )   (56 )
Non-GAAP net income $ 679   $ 875   $ 983   (22 )% (31 )%
 
GAAP earnings per share - diluted $ 0.27 $ 0.42 $ 0.49 (36 )% (45 )%
Non-GAAP adjustments per share - diluted   0.12     0.08     0.05  
Non-GAAP earnings per share - diluted $ 0.39   $ 0.50   $ 0.54   (22 )% (28 )%
 
Diluted WAS 1,742 1,753 1,828
 

Percentage of Total Net Revenue:

GAAP gross margin 20.9 % 21.6 % 22.6 %
Non-GAAP adjustment   1.1 %   1.0 %   0.5 %
Non-GAAP gross margin   22.0 %   22.6 %   23.1 %
 
GAAP operating expenses 16.6 % 15.4 % 15.2 %
Non-GAAP adjustment   (1.1 )%   (0.6 )%   (0.5 )%
Non-GAAP operating expenses   15.5 %   14.8 %   14.7 %
 
GAAP operating income 4.3 % 6.2 % 7.4 %
Non-GAAP adjustment   2.2 %   1.6 %   1.0 %
Non-GAAP operating income   6.5 %   7.8 %   8.4 %
 
GAAP net income 3.5 % 5.1 % 5.8 %
Non-GAAP adjustment   1.4 %   0.9 %   0.6 %
Non-GAAP net income   4.9 %   6.0 %   6.4 %

(1) Includes the results of Dell's Fiscal 2013 acquisitions from their respective acquisition dates.

     
 
DELL INC.

Reconciliation of Non-GAAP Financial Measures

(in millions, except per share data and percentages; percentage growth rates and ratios are calculated based on underlying data in thousands)

(unaudited)

 
Nine Months Ended % Growth Rates
November 2, October 28,

2012(1)

2011 Yr. to Yr.
GAAP gross margin $ 9,077 $ 10,426 (13 )%
Non-GAAP adjustments:
Amortization of intangibles 317 222
Severance and facility actions and acquisition-related costs   56     34  
Non-GAAP gross margin $ 9,450   $ 10,682   (12 )%
 
GAAP operating expenses $ 6,763 $ 6,926 (2 )%
Non-GAAP adjustments:
Amortization of intangibles (108 ) (65 )
Severance and facility actions and acquisition-related costs   (224 )   (171 )
Non-GAAP operating expenses $ 6,431   $ 6,690   (4 )%
 
GAAP operating income $ 2,314 $ 3,500 (34 )%
Non-GAAP adjustments:
Amortization of intangibles 425 287
Severance and facility actions and acquisition-related costs   280     205  
Non-GAAP operating income $ 3,019   $ 3,992   (24 )%
 
GAAP net income $ 1,842 $ 2,728 (32 )%
Non-GAAP adjustments:
Amortization of intangibles 425 287
Severance and facility actions and acquisition-related costs 280 205
Aggregate adjustment for income taxes   (232 )   (181 )
Non-GAAP net income $ 2,315   $ 3,039   (24 )%
 
GAAP earnings per share - diluted $ 1.05 $ 1.46 (28 )%
Non-GAAP adjustments per share - diluted   0.27     0.16  
Non-GAAP earnings per share - diluted $ 1.32   $ 1.62   (19 )%
 
Diluted WAS 1,757 1,874
 

Percentage of Total Net Revenue:

GAAP gross margin 21.3 % 22.6 %
Non-GAAP adjustment   0.9 %   0.6 %
Non-GAAP gross margin   22.2 %   23.2 %
 
GAAP operating expenses 15.9 % 15.0 %
Non-GAAP adjustment   (0.8 )%   (0.5 )%
Non-GAAP operating expenses   15.1 %   14.5 %
 
GAAP operating income 5.4 % 7.6 %
Non-GAAP adjustment   1.7 %   1.1 %
Non-GAAP operating income   7.1 %   8.7 %
 
GAAP net income 4.3 % 5.9 %
Non-GAAP adjustment   1.1 %   0.7 %
Non-GAAP net income   5.4 %   6.6 %

(1) Includes the results of Dell's Fiscal 2013 acquisitions from their respective acquisition dates.

                               
 

Dell Inc.

Supplemental Segment Information

Fiscal 2011

(in millions, unaudited)

 
Three Months Ended Fiscal Year Ended
April 30, 2010 July 30, 2010 October 29, 2010 January 28, 2011 January 28, 2011
As Reported   Recast   Variance As Reported   Recast   Variance As Reported   Recast   Variance As Reported   Recast   Variance As Reported   Recast   Variance

Net Revenue by Global Segment: (1)

Large Enterprise $ 4,246 $ 4,341 $ 95 $ 4,549 $ 4,618 $ 69 $ 4,326 $ 4,389 $ 63 $ 4,692 $ 4,763 $ 71 $ 17,813 $ 18,111 $ 298
Public 3,856 3,708 (148 ) 4,580 4,467 (113 ) 4,442 4,340 (102 ) 3,973 3,862 (111 ) 16,851 16,377 (474 )
Small and Medium Business 3,524 3,096 (428 ) 3,535 3,083 (452 ) 3,665 3,179 (486 ) 3,749 3,250 (499 ) 14,473 12,608 (1,865 )
Consumer   3,248       3,729       481     2,870       3,366       496     2,961       3,486       525     3,278       3,817       539     12,357       14,398       2,041  
Consolidated net revenue $ 14,874     $ 14,874     $   $ 15,534     $ 15,534     $   $ 15,394     $ 15,394     $   $ 15,692     $ 15,692     $   $ 61,494     $ 61,494     $  
 

Percentage of Total Net Revenue: (1)

Large Enterprise 28 % 29 % 1 % 29 % 30 % 1 % 28 % 28 % 30 % 30 % 29 % 29 %
Public 26 % 25 % -1 % 30 % 29 % -1 % 29 % 28 % -1 % 25 % 25 % 27 % 27 %
Small and Medium Business 24 % 21 % -3 % 23 % 20 % -3 % 24 % 21 % -3 % 24 % 21 % -3 % 24 % 21 % -3 %
Consumer 22 % 25 % 3 % 18 % 21 % 3 % 19 % 23 % 4 % 21 % 24 % 3 % 20 % 23 % 3 %
 

Consolidated Operating Income: (1)

Large Enterprise $ 283 $ 293 $ 10 $ 288 $ 289 $ 1 $ 400 $ 398 $ (2 ) $ 502 $ 510 $ 8 $ 1,473 $ 1,490 $ 17
Public 298 280 (18 ) 369 363 (6 ) 451 450 (1 ) 366 353 (13 ) 1,484 1,446 (38 )
Small and Medium Business 313 301 (12 ) 323 298 (25 ) 391 365 (26 ) 450 419 (31 ) 1,477 1,383 (94 )
Consumer   17       37       20     (21 )     9       30           29       29     69       105       36     65       180       115  
Segment operating income $ 911     $ 911     $   $ 959     $ 959     $   $ 1,242     $ 1,242     $   $ 1,387     $ 1,387     $   $ 4,499     $ 4,499     $  

(1) In the first quarter of Fiscal 2013, Dell made certain segment realignments in order to conform to the way Dell now internally manages segment performance. These realignments affected all of Dell's operating segments, but primarily consisted of the transfer of small office business customers from the Small and Medium Business segment to the Consumer Segment. Dell has recast prior period amounts to provide visibility and comparability. None of these changes impacts Dell's previously reported consolidated net revenue, gross margin, operating income, net income, or earnings per share.

                               
 
Dell Inc.

Supplemental Segment Information

Fiscal 2012

(in millions, unaudited)

 
Three Months Ended Fiscal Year Ended
April 29, 2011 July 29, 2011 October 28, 2011 February 3, 2012 February 3, 2012
As Reported   Recast   Variance As Reported   Recast   Variance As Reported   Recast   Variance As Reported   Recast   Variance As Reported   Recast   Variance

Net Revenue by Global Segment: (1)

Large Enterprise $ 4,477 $ 4,587 $ 110 $ 4,584 $ 4,677 $ 93 $ 4,487 $ 4,540 $ 53 $ 4,909 $ 4,982 $ 73 $ 18,457 $ 18,786 $ 329
Public 3,767 3,621 (146 ) 4,457 4,329 (128 ) 4,375 4,287 (88 ) 3,949 3,833 (116 ) 16,548 16,070 (478 )
Small and Medium Business 3,768 3,355 (413 ) 3,709 3,306 (403 ) 3,712 3,326 (386 ) 3,977 3,560 (417 ) 15,166 13,547 (1,619 )
Consumer   3,005       3,454       449     2,908       3,346       438     2,791       3,212       421     3,196       3,656       460     11,900       13,668       1,768  
Consolidated net revenue $ 15,017     $ 15,017     $   $ 15,658     $ 15,658     $   $ 15,365     $ 15,365     $   $ 16,031     $ 16,031     $   $ 62,071     $ 62,071     $  
 

Percentage of Total Net Revenue: (1)

Large Enterprise 30 % 31 % 1 % 29 % 30 % 1 % 29 % 29 % 30 % 31 % 1 % 30 % 30 %
Public 25 % 24 % -1 % 28 % 28 % 29 % 28 % -1 % 25 % 24 % -1 % 27 % 26 % -1 %
Small and Medium Business 25 % 22 % -3 % 24 % 21 % -3 % 24 % 22 % -2 % 25 % 22 % -3 % 24 % 22 % -2 %
Consumer 20 % 23 % 3 % 19 % 21 % 2 % 18 % 21 % 3 % 20 % 23 % 3 % 19 % 22 % 3 %
 

Consolidated Operating Income: (1)

Large Enterprise $ 504 $ 516 $ 12 $ 448 $ 460 $ 12 $ 441 $ 446 $ 5 $ 461 $ 467 $ 6 $ 1,854 $ 1,889 $ 35
Public 370 352 (18 ) 484 466 (18 ) 463 454 (9 ) 327 312 (15 ) 1,644 1,584 (60 )
Small and Medium Business 463 435 (28 ) 404 380 (24 ) 386 367 (19 ) 412 399 (13 ) 1,665 1,581 (84 )
Consumer   136       170       34     73       103       30     76       99       23     39       61       22     324       433       109  
Segment operating income $ 1,473     $ 1,473     $   $ 1,409     $ 1,409     $   $ 1,366     $ 1,366     $   $ 1,239     $ 1,239     $   $ 5,487     $ 5,487     $  

(1) In the first quarter of Fiscal 2013, Dell made certain segment realignments in order to conform to the way Dell now internally manages segment performance. These realignments affected all of Dell's operating segments, but primarily consisted of the transfer of small office business customers from the Small and Medium Business segment to the Consumer Segment. Dell has recast prior period amounts to provide visibility and comparability. None of these changes impacts Dell's previously reported consolidated net revenue, gross margin, operating income, net income, or earnings per share.

About Business Wire
Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Web 2.0 Latest News
For retailers everywhere, it’s a challenging new day. Security threats are a constant – both inside their four walls and out. The big security breaches we hear about on the news; the smaller ones sometimes not. But their impact remains costly to us all. The need for mobility, rapidly e...
I write and study often on the subject of digital transformation - the digital transformation of industries, markets, products, business models, etc. In brief, digital transformation is about the impact that collected and analyzed data can have when used to enhance business processes ...
I had the privilege of attending a mobile security event this week and speaking with many experts on the matter. I am not a mobile security expert, so my role was to speak on mobile strategies and trends and to learn as much as I could. What did I learn? I learned the difference b...
General Electric (GE) has been a household name for more than a century, thanks in large part to its role in making households easier to run. Starting with the light bulb invented by its founder, Thomas Edison, GE has been selling devices (“things”) to consumers throughout its 122-year...
It's time to condense all I've seen, heard, and learned about the IoT into a fun, easy-to-remember guide. Without further ado, here are Five (5) Things About the Internet of Things: 1. It's the end-state of Moore's Law. It's easy enough to debunk the IoT as “nothing new.” After all,...
Subscribe to the World's Most Powerful Newsletters
Subscribe to Our Rss Feeds & Get Your SYS-CON News Live!
Click to Add our RSS Feeds to the Service of Your Choice:
Google Reader or Homepage Add to My Yahoo! Subscribe with Bloglines Subscribe in NewsGator Online
myFeedster Add to My AOL Subscribe in Rojo Add 'Hugg' to Newsburst from CNET News.com Kinja Digest View Additional SYS-CON Feeds
Publish Your Article! Please send it to editorial(at)sys-con.com!

Advertise on this site! Contact advertising(at)sys-con.com! 201 802-3021




SYS-CON Featured Whitepapers
ADS BY GOOGLE