NewsByte 16 August 2001

Strong Enterprise, Global Share Growth Key to Dell's Industry-Best Second Quarter

Company Delivers to Guidance for Stable Operating Profitability

Dell achieved a 30-percent increase in product shipments outside of the United States, posted 33-percent growth in global volume of enterprise systems and accounted for virtually all of the computer-systems industry's operating profits during the company's fiscal second quarter. World-wide shipments of PowerEdge servers jumped 36 percent in a category that was up just 1 percent, as Dell gained four points of server market share-nearly eight in the U.S. The company's U.S. server share ranked No. 1 for the second straight quarter. Volumes of Inspiron and Latitude notebook computers grew at three times the industry rate. And Dell's 19-percent year-over-year increase in overall product shipments countered a world-wide industry decline. Dell operating results for the quarter ended Aug. 3 were consistent with guidance provided at the start of the period. Second-quarter net income totalled $433 million, or 16 cents per share, excluding a pre-tax charge of $742 million for job reductions, consolidation of facilities and impairment of assets. Company revenue was $7.6 billion, down 1 percent from a year ago.