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DELL SALES RISE 149 PERCENT TO $570 MILLION IN THIRD QUARTER; RECORD EARNINGS PER SHARE OF $.72

 AUSTIN, Texas, Nov. 19 ~PRNewswire~ -- Dell Computer Corporation (NASDAQ: DELL) today reported sales increased 149 percent to $570 million in the third fiscal quarter (ended Nov. 1, 1992), marking the third consecutive quarterly revenue increase of more than 100 percent over the prior-year quarter. Net income increased 120 percent to a record $29 million, and earnings per share were $.72 cents, versus $.35 cents in the year-ago period.
 DELL COMPUTER CORPORATION
 (In millions except share data)
 Q3 Q3 Percent
 FY93 FY92 change
 Net sales $570.0 $229.3 +149
 Net income $28.6 $13.0 +120
 EPS $.72 $.35
 Shares outstanding 39,569 37,608
 "We are continuing to gain share from both larger and smaller competitors, and it is clear that customers are not necessarily looking for the lowest price, but for the best overall value," said Michael S. Dell, chairman and chief executive officer. "We believe we provide that value, and the results of a series of recent customer satisfaction studies re-confirm our belief."
 Reflecting broad-based customer demand, domestic sales increased 138 percent to $377 million, versus $158 million in the third quarter a year ago. Sales increased sharply in every customer segment; sales increases in the U.S. business were highest among large corporate, government and educational accounts.
 International sales surged 172 percent to $193 million, compared with sales of $71 million in the comparable, year-ago quarter. The international growth was driven both by increased market penetration and by expansion into new countries. Each of Dell's most mature international subsidiaries--the United Kingdom, Canada, Germany and France -- achieved sales gains of more than 125 percent.
 Worldwide, sales to large corporate, government and educational accounts increased by 176 percent to $286 million. Sales to individuals and small to medium-sized businesses grew 138 percent to $212 million, and sales to value-added resellers were $72 million, up 96 percent over the year ago.
 Dell's gains were paced by large increases in sales of 486-based systems, which represented more than 70 percent of total system sales in the quarter. In the year-ago quarter, 486-based sales represented only 19 percent of total system sales.
 Net income in the third quarter of fiscal 1993 benefited from relatively lower operating expenses, which declined for the sixth consecutive quarter as a percentage of revenue. Operating expenses represented 14.5 percent of sales in the quarter, versus 23.8 percent of sales in the third quarter of fiscal 1992.
 "We are continuing to make investments needed to support the rapid growth of our business and to ensure a steady flow of new products and services," said Mr. Dell. "We are able to do this and still continue to improve our operating expenses because our centralized, direct-marketing business model enables us to leverage economies of scale very effectively.
 "We have also significantly improved our internal efficiency and productivity," he said. Mr. Dell added that sales per employee in the third fiscal quarter were running at an annualized rate of $536,000, compared with annualized sales per employee of $354,000 in the third quarter a year ago.
 At the end of the third fiscal quarter, inventories represented 6.7 weeks' of supply.
 Cash and investments, net of borrowings, were $73 million, versus $113 million at the beginning of the fiscal year, as Dell continues to invest in the growth of the business.
 For the first nine months of fiscal 1993, sales increased 131 percent to $1.4 billion, versus sales of $604 million in the first nine months of fiscal 1992. Net income was $70 million, 98 percent higher than net income of $35 million in the year-ago period. Earnings per share were $1.81, compared with $1.00 in the first nine months of fiscal 1992.
 Consolidated statements of income and financial position follow.
 A Fortune 500 company, Dell Computer Corporation designs, develops, manufactures, markets, services and supports a complete line of personal computers compatible with industry standards. Dell pioneered the direct marketing of personal computers in 1984 and was the first company in the PC industry to offer manufacturer-direct technical support. Information on the company and its products can be obtained through its toll-free number: 1-800-BUY-DELL (1-800-289-3355).
 Dell is a registered trademark of Dell Computer Corporation.
 DELL COMPUTER CORPORATION
 Condensed Consolidated Statement of Income
 (In thousands, except per share data)
 Periods ended Three months Nine months
 11~1~92 11~3~91 11~1~92 11~3~91
 Net sales $ 570,019 $ 229,330 $1,393,618 $ 604,208
 Cost of sales 448,022 158,573 1,071,556 408,349
 Gross profit 121,997 70,757 322,062 195,859
 Operating expenses:
 Marketing and sales 58,236 36,188 158,453 96,708
 General and
 administrative 13,568 9,567 34,819 27,033
 Research, development
 and engineering 10,758 8,654 32,322 23,407
 Total operating
 expenses 82,562 54,409 225,594 147,148
 Operating income 39,435 16,348 96,468 48,711
 Net financing and other
 income 880 1,788 2,738 2,989
 Income before income
 taxes 40,315 18,136 99,206 51,700
 Provision for income
 taxes 11,691 5,133 28,851 16,209
 Net income $ 28,624 $ 13,003 $ 70,355 $ 35,491
 Earnings per share $ 0.72 $ 0.35 $ 1.81 $ 1.00
 Weighted average
 shares outstanding 39,569 37,608 38,803 35,589
 DELL COMPUTER CORPORATION
 Condensed Consolidated Statement of Financial Position
 (In thousands)
 11~1~92 2~2~92
 ASSETS
 Current assets:
 Cash & cash equivalents $ 31,098 $ 55,460
 Marketable securities 91,030 99,392
 Accounts receivable, net 331,254 164,960
 Inventories 233,901 126,554
 Other current assets 79,765 65,814
 Total current assets 767,048 512,180
 Property & equipment, net 60,285 44,661
 Other assets 2,835 2,722
 Total $ 830,168 $ 559,563
 LIABILITIES & STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 252,558 $ 97,389
 Accrued liabilities 156,417 114,816
 Income taxes 15,266 17,329
 Total current liabilities 424,241 229,534
 Long-term debt 48,720 41,450
 Other liabilities 15,191 14,399
 Stockholders' equity 342,016 274,180
 Total $ 830,168 $ 559,563
 -0- 11~19~92
 ~CONTACT: Michele Moore or Roger Rydell, 512-794-4100, or (investors) Don Collis or Ken Smith, 512-338-8671 or 512-794-4034, all of Dell Computer Corporation~
 (DELL)


CO: Dell Computer Corporation ST: Texas IN: CPR SU:

TS -- NY011 -- 2662 11~19~92 08:00 EST
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Date:Nov 19, 1992
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