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DELL REPORTS FIRST QUARTER EPS OF $.52; SALES MORE THAN DOUBLE TO $366 MILLION

 DELL REPORTS FIRST QUARTER EPS OF $.52;
 SALES MORE THAN DOUBLE TO $366 MILLION
 AUSTIN, Texas, May 19 /PRNewswire/ -- Dell Computer Corporation (NASDAQ: DELL) today reported that sales soared to $366.1 million in the first quarter of fiscal 1993 (ended May 3, 1992), up 109 percent over the year-earlier period. Net income nearly doubled to $19.8 million, and earnings per share rose to $.52 cents on 38 million shares outstanding, versus $.30 on 33 million shares in the year-ago quarter. The quarter marked the tenth consecutive quarter of sequentially higher sales and earnings for Dell.
 DELL COMPUTER CORPORATION
 (In millions except per share data)
 First Quarter Percent
 FY 93 FY 92 Change
 Net sales $366.1 $174.8 +109
 Net income $19.8 $10.1 +96
 EPS $.52 $.30 +73
 Shares O/S 38,030 33,115
 Earnings per share have been adjusted to reflect a 3-for-2 stock split distributed April 9, 1992.
 "Our marketshare momentum accelerated during the quarter and confirms our belief that Dell's business model may be imitated -- but not duplicated," said Michael S. Dell, chairman and chief executive officer. "We have continually expanded and refined the efficiency of our approach so we can offer higher-performance products and innovative customer services at the same time we lower prices to drive market share."
 In the first quarter of fiscal 1993, sales doubled in both U.S. and international operations and were higher in every country and in every customer segment over the comparable quarter a year ago.
 Sales from Dell's eight-year-old domestic operation rose 116 percent to $226.3 million over $104.8 million in the first quarter of fiscal 1992. New promotions, new pricing and tightly focused marketing and customer services were among the reasons for the sales gain. "Our domestic sales were up more than 35 percent from the fourth quarter of last fiscal year and order rates accelerated as the quarter progressed," said Dell. "It is clear that customers are converting to Dell in a major way."
 International sales were $139.8 million compared with $70.1 million in the fiscal 1992 quarter. Noting that half of the company's 14 wholly owned international subsidiaries are less than a year old, Dell said the company is just beginning to tap its potential internationally. Dell opened new subsidiaries in Poland and Czechoslovakia last week.
 Sales to individuals and small to medium-sized businesses were particularly strong in the quarter, increasing 145 percent over sales to this segment in the first quarter a year ago. Dell attributed the growth to the introduction of new products particularly well-suited for these customers, aggressive pricing and new promotional activities.
 Sales of computers based on the 486 microprocessor rose to represent more than half of system revenues in the first quarter, reflecting the company's strategy to rapidly transition its customers to the latest technology by offering higher-performance systems at very competitive prices. Citing a "highly productive" research and development organization, Dell noted that the company has introduced 33 new products over the past 12 months, 15 of them since the start of the current fiscal year on February 3.
 Net income in the first quarter of fiscal 1993 benefited from the company's continued emphasis on controlling costs despite significant revenue growth and geographic expansion. Operating expenses represented approximately 19 percent of revenue, down more than six percentage points from operating expenses in the year-ago quarter and down more than four percentage points from the fourth quarter of fiscal 1992. The operating-expense decreases substantially offset lower gross margins resulting from the company's aggressive pricing actions.
 "Our strong emphasis on increased efficiencies and reduced operating costs in the latest quarter enabled us to again hit our net income objective of between five and six percent of sales. Dell has achieved this profitability target in every quarter for the past two years," Dell said.
 A lower tax rate in the first quarter of fiscal 1993 than in the year-earlier quarter also favorably affected income. The lower rate was primarily due to planned tax benefits associated with volume production at Dell's manufacturing facility in Ireland and international start-up operations.
 Inventories in the quarter represented a record low of 5.7 weeks of supply. Inventories were drawn down heavily to meet strong product demand, however; the company cautioned that the exceptionally low inventory level may not be sustainable on an ongoing basis.
 At the end of the quarter, cash and investments net of borrowings were $133.9 million, versus $113.4 million at the beginning of the fiscal year.
 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).
 Consolidated statements of income and of changes in financial position follow.
 DELL COMPUTER CORPORATION
 Condensed Consolidated Statement of Income
 (Unaudited, in thousands, except per share data)
 Three months ended 5/3/92 5/5/91
 Net sales $366,122 $174,836
 Cost of sales 270,089 115,814
 Gross profit 96,033 59,022
 Operating expenses:
 Marketing and sales 48,289 28,788
 General and administrative 10,057 8,195
 Research, development
 and engineering 10,413 7,170
 Total operating expenses 68,759 44,153
 Operating income 27,274 14,869
 Net financing and other income 804 161
 Income before income taxes 28,078 15,030
 Provision for income taxes 8,283 4,960
 Net income $ 19,795 $ 10,070
 Earnings per share $ 0.52 $ 0.30
 Weighted average shares outstanding 38,030 33,115
 DELL COMPUTER CORPORATION
 Condensed Consolidated Statement of Financial Position
 (In thousands)
 5/3/92 2/2/92
 (Unaudited)
 Assets:
 Current assets:
 cash and cash equivalents $ 31,225 $ 55,460
 Marketable securities 180,974 99,392
 Accounts receivable, net 217,654 164,960
 inventories 119,953 126,554
 Other current assets 60,935 65,814
 Total current assets 610,741 512,180
 Property and equipment, net 45,317 44,661
 Other assets 2,510 2,722
 Total $ 658,568 $ 559,563
 Liabilities and Stockholders' Equity
 Current liabilities:
 Accounts and notes payable $ 176,145 $ 97,389
 Other current liabilities 116,537 114,816
 Income taxes 17,879 17,329
 Total current liabilities 310,561 229,534
 Long-term debt 41,450 41,450
 Other liabilities 13,480 14,399
 Stockholders' equity 293,077 274,180
 Total $ 658,568 $ 559,563
 Dell is a registered trademark of Dell Computer Corporation.
 -0- 5/19/92
 /CONTACT: Michele Moore, or Jill Shanks, 512-343-3535, or 512-338-8499, or (investors) Don Collis, 512-338-8671 all of Dell Computer/
 (DELL) CO: Dell Computer Corporation ST: Texas IN: CPR SU: ERN


TS -- NY009 -- 1643 05/19/92 08:29 EDT
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