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DELL REPORTS RECORD INCOME AND SALES IN THIRD FISCAL QUARTER; CONTINUES TO GAIN SHARE IN U.S. AND INTERNATIONAL MARKETS

    DELL REPORTS RECORD INCOME AND SALES IN THIRD FISCAL QUARTER;
     CONTINUES TO GAIN SHARE IN U.S. AND INTERNATIONAL MARKETS
    AUSTIN, Texas, Nov. 21 /PRNewswire/ -- Dell Computer Corporation (NASDAQ: DELL) today announced that net income increased 90 percent to $13.0 million on record sales of $229.3 million in the third quarter of fiscal 1992 (ended Nov. 3, 1991).  Earnings per share were $.52, compared with earnings per share of $.34 in the third quarter of the previous fiscal year.
     (in 000s except      Q3         Q3      Percent
      per share data)    FY 92      FY 91    Change
    Net Sales        $229,330   $136,748      +68
    Net Income        $13,003     $6,853      +90
    EPS                  $.52       $.34      +53
    Shares O/S         25,072     20,020
    Sales increased across all customer segments and in every country in which Dell operates.  United States sales were up 67 percent to $158.4 million in the third quarter of fiscal 1992, compared with $95.1 million in the third quarter a year ago.  Internationally, third-quarter sales increased 70 percent to $70.9 million, vs. $41.6 million in the comparable quarter of the prior year.
    "The consistent strength of our revenue momentum in the third quarter -- and throughout this fiscal year -- demonstrates that we are very well-positioned to meet rapidly changing market conditions," said Michael S. Dell, chairman and chief executive officer.
    A highly productive research and development program has been crucial to the company's revenue gains, Mr. Dell said.  Dell has introduced 19 new systems since the beginning of the fiscal year and has been expanding its product offerings in the high-growth markets for portables and for systems based on the Intel 486 microprocessor. Revenues from these product areas were more than 35 percent of total system revenues in the third quarter of fiscal 1992.
    Net income benefited from a lower level of operating expenses, higher interest income on the company's cash and investments portfolio, and a lower tax rate largely due to an expected benefit from Dell's manufacturing facility in Ireland and improved operating performance and tax structure in international start-up operations.  Tax benefits associated with tax-exempt interest income also contributed to the lower rate.
    "We are pleased that we have met our return-on-sales objectives throughout this fiscal year," Mr. Dell said.  "Our expense and asset management programs have enabled us to deliver consistent, bottom-line results even as we aggressively price our systems and sustain lower gross margins in order to continue to gain market share."
    At the end of the third fiscal quarter, Dell had cash and investments totalling $153.7 million.  Inventories were approximately nine weeks of sales.
    For the first nine months of fiscal 1992, sales increased 59 percent to $604.2 million, compared with $378.9 million in the first nine months of fiscal 1991.  Net income was $35.5 million vs. $18.6 million, and earnings per share were $1.50 vs. $.94.
    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 financial position follow:
                     DELL COMPUTER CORPORATION
                 Consolidated Statement of Income
               (In thousands, except per share data)
                           (unaudited)
     Periods ended            Three Months        Nine Months
     Nov. 3;                 1991      1990     1991       1990
    Net Sales              $229,330 $136,748   $604,208  $378,899
    Cost of sales           158,573   91,224    408,349   252,485
    Gross Profit             70,757   45,524    195,859   126,414
    Operating expenses:
    Marketing and sales      36,188   22,481     96,708    60,183
     General and
      administrative          9,567    6,420     27,033    18,094
     Research, development
      and engineering         8,654    5,292     23,407    16,513
    Total operating
     expenses                54,409   34,193    147,148    94,790
      Operating income       16,348   11,331     48,711    31,624
    Financing and other
     (income) expenses:
     Interest expense           486      302      1,029     1,227
     Other (income)
      expenses               (2,274)      60     (4,018)      635
     Total financing and other
     (income) expenses       (1,788)     362     (2,989)    1,862
     Income before
     income taxes            18,136   10,969     51,700    29,762
    Provision for
     income taxes             5,133    4,116     16,209    11,163
      Net income           $ 13,003 $  6,853   $ 35,491  $ 18,599
    Earnings per share     $   0.52 $   0.34    $  1.50  $   0.94
    Weighted average shares
     outstanding             25,072   20,020     23,726    19,827
                     DELL COMPUTER CORPORATION
       Condensed Consolidated Statement of Financial Position
                          (in thousands)
                                         11/3/91        2/3/91
                                       (unaudited)
    ASSETS:
     Current assets:
      Cash                             $  76,519      $  36,627
      Investments                         77,148            ---
      Accounts receivable, net           129,044         89,699
      Inventories                        112,766         88,462
      Other current assets                29,604         21,480
        Total current assets             425,081        236,268
      Property and equipment, net         42,530         26,483
      Other assets                         2,743          1,471
     Total                             $ 470,354      $ 264,222
    LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Notes payable                    $     ---      $     ---
      Accounts payable                    95,629         77,911
      Other current liabilities           83,962         63,194
        Total current liabilities        179,591        141,105
     Obligations under capital leases      2,787          4,207
     Other liabilities                    32,050          6,905
     Stockholders' equity                255,926        112,005
    Total                              $ 470,354      $ 264,222
    -0-              11/21/91
    /NOTE TO EDITORS:  Dell is a registered trademark of Dell Computer Corporation./
    /CONTACT:  Michele Moore (media), 512-343-3535, or Don Collis (investors), 512-338-8671, both of Dell Computer/
    (DELL) CO:  Dell Computer Corporation ST:  Texas IN:  CPR SU:  ERN FC -- NY012 -- 5725 11/21/91 09:00 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Nov 21, 1991
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