Analyst Conference Summary


conference date: August 30, 2007
for quarter ending: August 3, 2007 (2nd quarter fiscal 2008)

Dell is still not holding analyst conferences. The information below is from the press release; it is provided to allow historical comparisons. Dell says this information is preliminary and may need to be restated.

Forward-looking statements

Overview: Good earnings increase on modest revenue growth.

Basic data:

Revenue was $14.8 billion, up 7% from year-earlier.

Net income $733 million, up 46% from $502 million year-earlier.

Earnings per share were $0.32, up 46% from year-earlier $0.22.

Cash and marketable securities ended $13.8 billion.


Nothing specific. Short-term results could be impacted if component costs do not continue their rate of decline seen in Q2.

Conference Highlights:

Improved selling prices combined with lower component costs drove profitability. Enterprise products and services were particularly strong.

Server revenue was $1.6 billion. Dell shipped 32.7% of units sold in the U.S. Storage revenue was $0.6 billion. "Mobility" products (notebook computers) revenue was $3.9 billion. Desktop revenue was $5.0 billion.

Unusual costs in this quarter included $102 million for expired in-the-money stock options and $59 million for Audit Committee investigation. A backlog accumulated because of supply constraints for certain colors of XPS notebooks and a shortage of flat-panel displays.

Enhanced services revenue was $1.3 billion. Software and Peripherals had $2.4 billion in revenue.

Number of employees rose, mainly in sales and customer support. However, trying to reduce operating expenses.

Product launches during the quarter were recapped.


Expects no share repurchases until 10-K for fiscal 2007 is filed with SEC, expected first week of November.

Cost of revenue was $11.8 billion. Gross margin $2.9 billion. Operating expenses $2.0 billion. Operating income was $896 million. Other income $97 million. Tax provision $260 million. Net income $733 million.



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Disclaimer: Our analyst summaries may include both our condensations of statements made by company representatives and our own analysis. They are not covered by any warranty. We cannot guarantee anything said by company representatives is true. We try not to make errors, but it is possible. Before making or terminating an investment you should always verify any factual basis of your decision.

Copyright 2007 William P. Meyers