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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
February 21, 1995
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Date of Report (Date of earliest event reported)
DELL COMPUTER CORPORATION
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(Exact name of Registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
0-17017 74-2487834
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(Commission File No.) (IRS Employer Identification
Number)
2112 Kramer Lane, Building 1
Austin, Texas 78758-4012
(512) 338-4400
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(Address of Principal Executive Offices)
Not Applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
The sole purpose of this Form 8-K is to file a press release issued
by Dell Computer Corporation on February 21, 1995 regarding its financial
results for the fiscal year ended January 29, 1995.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99.1 Press Release, dated February 21, 1995
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DELL COMPUTER CORPORATION
By:/s/ THOMAS J. MEREDITH
Thomas J. Meredith
Chief Financial Officer
Date: February 21, 1995
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INDEX TO EXHIBITS
Sequentially
Exhibit Numbered
Number Description Page
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99.1 Press Release, dated February 21, 1995
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DELL SALES TOP $1 BILLION IN FOURTH QUARTER
STRONG SALES OF NOTEBOOKS AND PENTIUM SYSTEMS FUEL GROWTH
AUSTIN, TEXAS, FEB. 21, 1995 -- Dell Computer Corporation (Nasdaq: DELL) today
reported record sales of $1.03 billion for the fourth quarter ended January 29,
1995, resulting in record earnings of $1.36 per common share. Sales increased
17 percent sequentially from the third quarter, and were up 39 percent over the
fourth quarter of the prior year.
Earnings included a one-time benefit of $0.10 primary earnings per share
from the inclusion of an extra month of international operations as the company
unified its domestic and international fiscal year-end. Excluding that
benefit, earnings still were a record $1.26 per common share.
Worldwide fiscal 1995 sales totaled $3.5 billion, up 21 percent over
fiscal 1994. The company earned $3.38 per common share, compared with a loss
of $(1.06) per common share in fiscal 1994.
<TABLE>
<CAPTION>
(IN MILLIONS EXCEPT PER SHARE DATA)
Q4 FY'95 Q4 FY'94 FY'95 FY'94
<S> <C> <C> <C> <C>
Net Sales $1,032.7 $ 742.9 $3,475.3 $2,873.2
Operating Income (Loss) $ 78.7 $ 27.2 $ 249.3 ($ 39.0)
Net Income (Loss) $ 60.3 $ 17.7 $ 149.2 ($ 35.8)
Earnings per Common Share (Loss) $ 1.36 $ .39 $ 3.38 ($ 1.06)
Weighted Average Shares Outstanding 42.9 39.9 41.5 37.3
</TABLE>
"We began last year with a renewed focus on our direct model and a
strategy to pursue specific opportunities in notebook marketplace penetration,
the transition to Pentium processors and geographic expansion," said Michael S.
Dell, chairman and chief executive officer. "Our results clearly demonstrate
the continued success of our business model. We delivered solid growth,
improved profit margins and produced one of the best balance sheets in the
industry.
"My congratulations go out to all Dell employees worldwide whose spirit,
dedication and focus continue to drive our success."
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2-2-2-2
Strong demand for the company's Latitude family of notebook computers and
its higher-end, Pentium processor-based systems keyed Dell's sales growth in
the fourth quarter and the fiscal year. Sales of notebook computers represented
14 percent of worldwide sales during the fourth quarter, compared with 9
percent in the previous quarter. Fourth-quarter notebook sales surpassed sales
for the previous three quarters combined.
"Customer acceptance of our strong notebook product line has been
outstanding around the globe and is helping drive our overall momentum," Mr.
Dell said. "Our notebook products are hailed by customers and independent
reviewers alike. Our commitment to research and development and our focus on
quality both contributed to our dramatic success in portables."
Since re-entering the notebook market in 1994, Dell has won more than 20
major product awards worldwide, including the "Analysts' Choice" award from PC
Week and the "Editor's Choice" award from PC Magazine, both for
price/performance; the "Best" award from PC/Computing for durability and
reliability; and the "Chairman's Choice" award from Power 94 for technical
innovation.
Fourth-quarter sales based on the Pentium processor represented 44 percent
of worldwide systems sales, compared with 32 percent in the third quarter.
Dell has been an industry leader in the shift to Intel's fifth-generation
processor, which provides users with the highest available performance and
systems capabilities. "Our direct business model and the flexibility it
provides enabled us to take the lead in the transition to Pentium processors,"
said Mr. Dell, who cited the company's low inventory position as a key factor
in Dell's ability to rapidly build and deliver products incorporating new
technologies.
Additionally, the company's momentum in the notebook and Pentium-processor
marketplaces helped pace its seventh consecutive quarter of growth in average
revenue per unit, which over the past 12 months increased 11 percent. The
company's direct, build-to-order model enables it to meet customer demand for
more richly configured notebook, desktop and server computers customized with
software and peripherals.
Fourth-quarter sales in Europe increased 33 percent over the same period
in fiscal 1994 reflecting strong acceptance of the company's direct strategy,
improvements in cost structure and broadened product offerings.
Other international sales increased 69 percent over the fourth quarter of
fiscal 94, keyed by strong growth in Japan.
"There is increasing opportunity in the years ahead in emerging markets,
and we intend to continue to invest in infrastructure and management systems to
support business growth in Europe and Asia," said Mort Topfer, vice chairman.
During the fourth quarter, the company announced plans to build a manufacturing
plant in Penang, Malaysia, and approximately doubled the size of its Limerick,
Ireland, manufacturing plant.
Gross profit margins rose to 21 percent of sales in the fourth quarter,
compared with 20.5 percent of sales in the third quarter of fiscal 1995 and
18.6 percent of sales in the fourth quarter of fiscal 1994. The increase was
driven by materials and manufacturing cost reductions and a stable pricing
environment.
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3-3-3-3
Operating expenses decreased to 13.4 percent of sales in the fourth
quarter, compared with 13.8 percent of sales in the previous quarter and 15.0
percent of sales in the fourth quarter of fiscal 1994.
Fourth-quarter selling, general and administrative expenses, at 11.7
percent of sales, were the lowest as a percentage of sales recorded by the
company for two years. The decrease in fiscal 1995 more than offset the
company's increased investment in research and development. The company
increased research and development spending in fiscal 1995 to $65.4 million, up
34 percent over fiscal 1994.
Dell generated $121 million in cash from operations during the fourth
quarter, ending the year with $527 million in cash and investments. Over the
past 12 months, the company has generated more than $243 million in cash from
operations as it has raised profit margins and improved asset management.
For the sixth consecutive quarter, Dell maintained inventories
representing less than five weeks of sales, one of the lowest inventory
positions in the industry as the company continued to use its direct model to
efficiently manage assets.
"This is further evidence of our execution in balancing growth with
liquidity and profitability," Mr. Dell said. "We grew our market share in the
fourth quarter and invested in our infrastructure while strengthening one of
the strongest liquidity positions in the industry.
"In the year ahead, we are focused on leveraging our momentum to increase
the size of the direct channel and also to increase our penetration within that
channel," Mr. Dell said.
For the 12 months ended January 29, 1995, sales were $3.5 billion, up 21
percent from sales of $2.9 billion in fiscal 1994. Net income was $149.2
million, versus a loss of $(35.8) million in the prior fiscal year. Primary
earnings per share were $3.38 versus a loss of $(1.06).
Consolidated statements of operations and financial position follow.
A Global 500(R) company, Dell Computer Corporation (Nasdaq: DELL) designs,
develops, manufactures, markets, services and supports a complete line of
personal computers compatible with industry standards. With annual revenues of
nearly $3.5 billion, Dell is the world's leading direct marketer of personal
computers and one of the top five personal computer vendors in the world.
Information on the company and its products can be obtained through its
toll-free number, 1-800-BUY-DELL (1-800-289-3355) or by accessing the Dell
Worldwide Web server, at http://www.us/dell.com/.
# # #
Dell is a registered trademark of Dell Computer Corporation.
Intel is a registered trademark of Intel Corporation, and Pentium is a
trademark of Intel Corporation.
Dell disclaims any proprietary interest in the marks and names of others.
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DELL COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(IN THOUSANDS)
(UNAUDITED)
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<TABLE>
<CAPTION>
JANUARY 29, JANUARY 30,
1995 1994
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<S> <C> <C>
ASSETS:
Current assets:
Cash $ 42,953 $ 3,355
Short-term Investments 484,294 333,667
Accounts receivable, net 537,974 410,774
Inventories, net 292,925 220,265
Other current assets 112,215 80,323
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Total current assets 1,470,361 1,048,384
Property and equipment, net 116,981 86,892
Other assets 6,658 5,204
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$1,594,000 $1,140,480
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 447,071 $ 282,708
Accrued liabilities 279,402 237,651
Income taxes 24,937 17,628
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Total current liabilities 751,410 537,987
Long-term debt 113,429 100,000
Other liabilities 77,425 31,385
Stockholders' equity 651,736 471,108
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$1,594,000 $1,140,480
</TABLE> ========== ==========
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DELL COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
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<TABLE>
<CAPTION>
Three Months Ended Fiscal Year Ended
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January 29, January 30, January 29, January 30,
1995 1994 1995 1994
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<S> <C> <C> <C> <C>
Net sales $ 1,032,662 $ 742,948 $3,475,343 $2,873,165
Cost of sales 815,500 604,598 2,737,290 2,440,349
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Gross profit 217,162 138,350 738,053 432,816
Operating expenses:
Selling, general and administrative 121,050 98,538 423,429 422,906
Research, development and engineering 17,444 12,656 65,361 48,934
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Total operating expenses 138,494 111,194 488,790 471,840
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Operating income (loss) 78,668 27,156 249,263 (39,024)
Financing and other income (expense), net(1) 7,354 1,884 (36,267) 258
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Income (loss) before income taxes 86,022 29,040 212,996 (38,766)
Provision for income taxes (benefit) 25,731 11,332 63,819 (2,933)
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Net income (loss) 60,291 17,708 149,177 (35,833)
Preferred stock dividends 2,188 2,187 8,750 3,743
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Net income (loss) applicable to common stockholders $ 58,103 $ 15,521 $ 140,427 $ (39,576)
=========== ========= ========== ==========
Earnings (loss) per common share:
Primary $ 1.36 $ 0.39 $ 3.38 $ (1.06)
=========== ========= ========== ==========
Fully diluted $ 1.25 $ -- $ 3.15 $ --
=========== ========= ========== ==========
Weighted average shares used to compute earnings per share:
Primary 42,862 39,870 41,542 37,333
=========== ========= ========== ==========
Fully diluted 48,079 -- 47,322 --
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</TABLE>
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(1) The three months and twelve months ended January 29, 1995 includes $5,725
pretax income in the financing and other income line for the additional
month of international operations as the company unified its domestic
and international fiscal year ends.
