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DELL EARNS RECORD $.77 ON FOURTH QUARTER SALES OF $620 MILLION; CONTINUED MARKETSHARE GAINS PUSH ANNUAL REVENUE PAST $2 BILLION

 AUSTIN, Texas, March 9 /PRNewswire/ -- Posting the fourth consecutive quarter of year-to-year sales growth in excess of 100 percent, Dell Computer Corporation (NASDAQ: DELL) today reported sales rose 117 percent to $620 million for the quarter ended Jan. 31, 1993.
 Net income more than doubled to $31 million. Earnings per share rose to a record $.77 versus $.41 in the fourth quarter a year ago.
 (In millions except share data)
 Q4 FY93 Q4 FY92 Change
 Net Sales $620.3 $285.7 +117 pct.
 Net Income $31.3 $15.4 +103 pct.
 EPS $.77 $.41
 Shares Outstanding 40,506 37,477
 "This has been an excellent quarter and a banner year for Dell," said Michael S. Dell, chairman and chief executive officer. "We doubled our annual revenues to $2 billion, more than doubled our marketshare and emerged as the third-largest IBM-compatible personal computer company in the world. We have made these unprecedented gains because we have long focused on value leadership, a strategy many of our competitors are just now beginning to adopt."
 "The power of our direct-marketing approach continues to be underestimated," Mr. Dell said, noting that Dell's fiscal 1993 sales were $1.1 billion higher than sales last fiscal year.
 Worldwide sales gains were paced by increased sales to major corporate, governmental and educational accounts which increased 132 percent to $302 million in the fourth quarter of fiscal 1993, compared with $130 million in the prior-year period. "While we continued to take share from major competitors, we also benefited from the market opportunity resulting from the host of small and less financially secure companies which are finding it increasingly difficult to compete," Mr. Dell said.
 Sales to small- to medium-sized businesses and individuals also rose sharply to $248 million, up 128 percent over the comparable period a year ago. Most of the growth was due to the strength of the company's direct-marketing business.
 Reflecting sharp gains in every customer segment, domestic sales increased 128 percent to $378 million, versus $166 million in the fourth quarter of fiscal 1992. International sales rose 103 percent to $242 million as a result of increased marketshare in existing subsidiaries and continued expansion into new countries. In January, Dell opened new subsidiaries in Australia and Japan; Dell's entry into Japan marked the most successful start-up of any subsidiary in the company's history, with record-setting initial sales.
 During the quarter, Dell continued to focus on cost reduction and improved efficiencies in order to deliver a healthy return to shareholders while driving for increased marketshare. Operating expenses as a percentage of sales represented 13 percent, a decline of more than 10 percentage points over the fourth quarter a year ago. General and administrative expenses were less than 2 percent of sales, half of what they were as a percentage of sales in the prior-year period.
 Dell also continued to focus on asset management. At the end of the quarter, component inventories represented approximately 8 weeks of supply, at the low end of the average range for the PC industry. Dell maintains limited finished goods inventory since its systems are made- to-order.
 Cash and investments were $95 million, compared with $155 million at the beginning of the fiscal year. In addition, the company recently entered into a new $200 million revolving line of credit with a group of nine multinational banks. Dell noted that it consumed only $39 million in operating cash over the year to generate a $1.1 billion increase in revenues. Additionally, the company invested $47 million in capital expenditures over the course of the year, primarily in telecommunications, facilities expansion and PC systems.
 For fiscal 1993, Dell achieved $2 billion in annual sales, an increase of 126 percent over sales of $890 million in fiscal 1992. Net income increased 100 percent to $102 million from $51 million in fiscal 1992. Fiscal 1993 earnings per share were $2.59, versus earnings per share of $1.40 in the prior fiscal year.
 "The expansion at Dell last year was more than a story of marketshare expansion," Mr. Dell said. "It was a year of significantly increased productivity and investment in key capabilities. We introduced 49 new PC systems -- the largest number of systems ever introduced by Dell. We opened operations in six new countries. We increased our software integration activities and we substantially expanded the number of service options available to our customers.
 "In the year ahead, we intend to continue making the investments needed to strengthen our capabilities for the long-term and to drive marketshare gains," Mr. Dell said. "The industry consolidation which began last year is accelerating. The winners' circle has been identified. We intend to expand our position in that winners' circle."
 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 PCs in 1984 and was the first company in the PC industry to offer manufacturer-direct technical support. With fiscal 1993 revenues of more than $2 billion, Dell is the third-largest IBM-compatible personal computer company in the world, according to the independent market research firm Dataquest. Information on the company and its products can be obtained through its toll-free number: 1-800-BUY-DELL (1-800-289-3355.)
 NOTE: Dell is a registered trademark of Dell Computer Corporation. Dell Computer Corporation disclaims any proprietary interest in the marks and names of others.
 DELL COMPUTER CORPORATION
 CONDENSED CONSOLIDATED STATEMENT OF INCOME
 (In thousands, except per share data)
 Three Months Ended Twelve Months Ended
 January 31, February 3, January 31, February 3,
 1993 1992 1993 1992
 Net sales $ 620,306 $ 285,731 $2,013,924 $ 889,939
 Cost of sales 492,917 199,419 1,564,472 607,768
 Gross profit 127,389 86,312 449,452 282,171
 Operating expenses:
 Marketing & sales 60,609 45,092 220,907 142,932
 General and
 administrative 11,938 12,190 47,075 39,223
 Research,
 development and
 engineering 10,037 9,737 42,358 33,140
 Total operating
 expenses 82,584 67,019 310,340 215,295
 Operating
 income 44,805 19,293 139,112 66,876
 Net financing
 and other
 income (721) 2,422 4,180 6,539
 Income before
 income taxes 44,084 21,715 143,292 73,415
 Provision for income
 taxes 12,798 6,295 41,650 22,504
 Net income $ 31,286 $ 15,420 $ 101,642 $ 50,911
 Earnings per
 share $ 0.77 $ 0.41 $ 2.59 $ 1.40
 Weighted average
 shrs. outstdg. 40,506 37,477 39,235 36,274
 DELL COMPUTER CORPORATION
 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
 (In thousands)
 January 31, February 2,
 1993 1992
 ASSETS
 Current assets:
 Cash and cash equivalents $ 14,948 $ 55,460
 Marketable securities 80,367 99,392
 Accounts receivable, net 374,013 164,960
 Inventories 303,220 126,554
 Other current assets 80,239 65,814
 Total current assets 852,787 512,180
 Property and equipment, net 70,462 44,661
 Other assets 3,756 2,722
 $ 927,005 $ 559,563
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 295,133 $ 97,389
 Accrued liabilities 171,473 114,816
 Income taxes 27,233 17,329
 Total current
 liabilities 493,839 229,534
 Long-term debt 48,373 41,450
 Other liabilities 15,593 14,399
 Stockholders' equity 369,200 274,180
 $ 927,005 $ 559,563
 -0- 3/9/93
 /CONTACT: Michele Moore or Roger Rydell, media relations, 512-794-4100, or Don Collis or Ken Smith, investor relations, 512-338-8671 or 512-794-4034, all of Dell Computer Corporation/
 (DELL)


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

PS -- NY014 -- 4357 03/09/93 08:41 EST
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