Dell Inc. Profile

1 Dell WayRound Rock, TX 78682-2222 United States (Map)

Phone: 512.338.4400Fax: 512.283.6161

Toll Free: 800.289.3355http://www.dell.com

  Table of Contents

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THE BASICS ..................................................................................................... 1

Key Information ......................................................................................... 1

Key Numbers ............................................................................................. 1

Rankings/Stock Indexes ........................................................................... 1

OVERVIEW ...................................................................................................... 2

HISTORY .......................................................................................................... 4

INDUSTRY INFORMATION ........................................................................... 6

OFFICERS AND EMPLOYEES ...................................................................... 7

Corporate Officers ................................................................................... 7

Board .......................................................................................................... 8

BIOGRAPHIES ................................................................................................ 9

Stephen F. (Steve) Schuckenbrock ....................................................... 9

Michael S. Dell .......................................................................................... 9

Lawrence P. (Larry) Tu .......................................................................... 10

Paul D. Bell .............................................................................................. 10

Bradley R. (Brad) Anderson ................................................................... 11

Jeffrey W. (Jeff) Clarke .......................................................................... 11

Alexander (Alex) Gruzen ....................................................................... 12

Martin J. Garvin ...................................................................................... 12

Glenn E. Neland ...................................................................................... 13

Stephen J. Felice .................................................................................... 13

Terry Kahler ............................................................................................. 14

Bill Rodrigues .......................................................................................... 14

Joan S. Hooper ....................................................................................... 15

Lynn A. Tyson .......................................................................................... 15

Richard L. (Dick) Hunter ....................................................................... 16

Rick Becker .............................................................................................. 16

Donald J. Carty Jr. ................................................................................. 17

SIGNIFICANT DEVELOPMENTS ................................................................. 18

COMPETITORS .............................................................................................. 19

Top Competitors ..................................................................................... 19

All Competitors ....................................................................................... 19

PRODUCTS AND OPERATIONS ................................................................ 20

COMPANY FINANCIALS .............................................................................. 21

Financial Overview ................................................................................. 21

Annual Income Statement .................................................................... 21

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Quarterly Income Statement ............................................................... 21

Annual Balance Sheet .......................................................................... 22

Quarterly Balance Sheet ...................................................................... 23

Annual Cash Flow .................................................................................. 24

Quarterly Cash Flow ............................................................................. 24

Historical Financials ............................................................................. 24

Market Data ............................................................................................ 25

Comparison Data ................................................................................... 26

Competitve Landscape ......................................................................... 27

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  The Basics

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1 Dell WayRound Rock, TX 78682-2222 United States (Map)

Phone: 512.338.4400Fax: 512.283.6161Toll Free: 800.289.3355http://www.dell.com

The name Dell may be synonymous with "direct," but the computer giant has a more diverse approach to the marketthese days. The world's #1 direct-sale computer vendor provides a broad range of computer products for the consumerand enterprise markets. In addition to a full line of desktop and notebook PCs, Dell offers network servers, workstations,storage systems, printers, projectors, and Ethernet switches. The company also markets third-party software andperipherals. Dell's growing services unit provides systems integration, support, and training. The company announcedplans to begin selling through retail stores in 2007.

KEY INFORMATIONDUNS Number 114315195Company Type Public - NASDAQ (GS): DELLLocation Type HeadquartersYear of Founding or Change In Control 1984

KEY NUMBERSFiscal Year-End JanuarySales (mil.) $61,133.01-Year Sales Growth 6.5%Net Income $2,947.01-Year Net Income Growth 14.1%Total Employees 88,2001-Year Employee Growth (2.5%)Employees At This Location 2,750

RANKINGS/STOCK INDEXES#34 in FORTUNE 500#183 in FT Global 500S&P 500

KEY PEOPLEMichael S. Dell Chairman and CEOBrian T. Gladden SVP and CFOStephen F. (Steve) Schuckenbrock SVP and CIO; President, Global ServicesMark Jarvis SVP and Chief Marketing OfficerBradley R. (Brad) Anderson SVP Business Product Group

  Overview

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The name Dell may be synonymous with "direct," but the computer giant has a more diverse approach to the marketthese days. The world's #1 direct-sale computer vendor provides a broad range of computer products for the consumerand enterprise markets. In addition to a full line of desktop and notebook PCs, Dell offers network servers, workstations,storage systems, printers, projectors, and Ethernet switches. The company also markets third-party software andperipherals. Dell's growing services unit provides systems integration, support, and training. The company announcedplans to begin selling through retail stores in 2007.

Entrepreneurial wunderkind Michael Dell pioneered the direct-sales model for computers and took the company fromhis dorm room to the top of the PC heap by keeping it focused on a simple formula: Eliminate the middleman and sell forless. Dell's built-to-order boxes allow for lower inventories, lower costs, and higher profit margins -- elements that haveserved it well through PC price wars and IT spending recessions. Though direct sales remain the core of Dell's business,a broader strategy has emerged since the company's founding father returned to the helm in early 2007.

Dell had ceded the CEO spot to his hand-picked successor, Kevin Rollins, in 2004. Rollins' resignation came as thecompany struggled with a number of difficult issues, most notably disappointing earnings and an SEC investigationinto its finances. (Dell restated several years of financial results after an audit revealed accounting irregularities.)Immediately following the shakeup, Dell announced streamlining measures including a reduction in managers and theelimination of 2006 bonuses. In mid-2007 the company announced plans to cut its workforce by 10% over the next year.It also confirmed plans to exit the flat-panel television business. In 2008 the company announced further cost-cuttingplans, including the closure of its Austin-based desktop PC manufacturing facility.

The changes at Dell have not been limited to cost-cutting, however. Since returning, Michael Dell has overseen anaggressive campaign to strengthen the company's market position. After years of seeing competitors attempt toemulate its success with the direct-sale model, Dell is now looking to expand its channel sales. In 2007 the companyannounced plans to begin selling two desktop PC models in Wal-Mart stores in the US and Canada. Previously Dell'sretail presence was limited to a display-only store in Dallas, and informational kiosks in malls and airports. Soon after theWal-Mart announcement, Dell confirmed plans to expand its retail push to additional partners worldwide. Furthering itsshift to retail partners, it announced plans to close its kiosks in the US early in 2008.

Dell has similarly broadened its computer offerings of late. The company built its fortune with the Wintel platform(Microsoft's Windows operating systems, Intel microprocessors) as its foundation, and Microsoft and Intel havetraditionally enjoyed exclusive relationships with the computer maker. However, in 2006 Dell responded to customerdemand and rolled out select computers with chips from AMD. The following year the company began offering a versionof Linux as an option on some of its consumer PCs. Dell supports versions of Linux from both Red Hat and Novell onselect servers, as well as Sun Microsystems' Solaris operating system. Dell's retail expansion plan was coupled with newsof a revamped line of consumer-oriented computers. It has also increased its design budget -- a significant move for acompany with a reputation for conservative R&D investment.

The company has made moves to increase its software portfolio. Dell acquired ASAP Software, a volume softwareacquisition and deployment specialist, for $340 million in 2007. It also purchased ZING Systems, a developer of softwareused in portable music devices. Other 2007 acquisitions included SilverBack Technologies, a developer of network assetmanagement software, and Everdream, a provider of remote desktop management software and services. Early in 2008Dell agreed to acquire MessageOne, a provider of managed email management and archiving services, for $155 millionin cash; MessageOne, which utilizes the Software-as-a-Service (SaaS) business model, was founded by Michael Dell'sbrother, Adam.

Dell, which generates about 60% of its sales from desktop and notebook PCs, faces intense competition from Hewlett-Packard. The company diversified its PC offerings in 2005 with the launch of XPS, a line of high-end desktop andnotebook PCs for gamers and others willing to pay premium prices for top performance. The following year Dell acquired

 

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high-performance PC specialist Alienware, which operates as a standalone subsidiary with independent branding andoperations.

Far from limited to PCs, the company is also a leading provider of server computers and storage devices for enterprises.Dell augmented its storage line when it reached an agreement with market leader EMC to resell that company'senterprise systems. Early in 2008 Dell completed its acquisition of storage systems provider EqualLogic for $1.4 billion.Other products outside the PC realm include Ethernet switches and printers. It originally partnered with Lexmark todevelop its line of Dell-branded printers, and it has formed additional partnerships to quickly grow its printing line.

On the services front, Dell has mirrored its straightforward approach to hardware sales, embracing a fixed-price modelfor offerings such as data migration and storage systems implementation. The company is also looking to internationalrevenue to supplant sales in the PC-saturated US market. Dell's operations in the Asia/Pacific region are based inSingapore, and include manufacturing units in China and Malaysia. Early in 2006 the company announced an aggressivegrowth plan for its Indian operations that expanded its existing call center and development units. Late in 2007 Dellmoved to take full ownership of Dell Financial Services, a technology leasing joint venture it formed with CIT Group in1997; Dell paid $306 million for CIT's 30% stake.

Michael Dell owns about 12% of the company.

  History

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At age 13 Michael Dell was already a successful businessman. From his parents' home in Houston, Dell ran a mail-order

stamp trading business that, within a few months, grossed more than $2,000. At 16 he sold newspaper subscriptions

and at 17 bought his first BMW. When Dell enrolled at the University of Texas in 1983, he was thoroughly bitten by the

entrepreneurial bug.

Dell started college as a pre-med student but found time to establish a business selling random-access memory (RAM)

chips and disk drives for IBM PCs. Dell bought products at cost from IBM dealers, who were required at the time to order

from IBM large monthly quotas of PCs, which frequently exceeded demand. Dell resold his stock through newspapers

and computer magazines at 10%-15% below retail.

By April 1984 Dell's dorm room computer components business was grossing about $80,000 a month -- enough

to persuade him to drop out of college. Soon he started making and selling IBM clones under the brand name PC's

Limited. Dell sold his machines directly to consumers rather than through retail outlets, as most manufacturers did. By

eliminating the retail markup, Dell could sell PCs at about 40% of the price of an IBM.

The company was plagued by management changes during the mid-1980s. Renamed Dell Computer, it added

international sales offices in 1987. In 1988 the company started selling to larger customers, including government

agencies. That year Dell went public.

The company tripped in 1990, reporting a 64% drop in profits. Sales were growing -- but so were costs, mostly because

of efforts to design a PC using proprietary components and reduced instruction set computer (RISC) chips. Also, the

company's warehouses were oversupplied. Within a year Dell turned itself around by cutting inventories and introducing

new products.

Dell entered the retail arena by letting Soft Warehouse (now CompUSA) in 1990 and office supply chain Staples in 1991

sell its PCs at mail-order prices. Also that year Dell opened a plant in Ireland.

In 1992 Xerox agreed to sell Dell machines in Latin America. Dell opened subsidiaries in Japan and Australia in 1993.

The computer maker abandoned retail stores in 1994 to refocus on its mail-order origins. It also retooled its troubled

notebook computer line and introduced servers.

In 1996 the company started selling PCs through its Web site. The next year Dell entered the market for workstations

and strengthened its consumer business by separating it from its small-business unit and launching a leasing program

for consumers. In 1998 the company stepped up manufacturing in the Americas and Europe and added a production and

customer facility in China.

Dell began selling a $999 PC in 1999. (Dell phased out the WebPC line after just seven months due to slow sales.) That

year the company made its first acquisition -- storage area network equipment maker ConvergeNet -- and opened a

plant in Brazil. In 2000 Dell broadened its high-end network servers and Internet-related services offerings, and formed

a division for its storage operations.

Faced with slumping PC sales in early 2001, the company eliminated 1,700 jobs -- about 4% of its workforce. Soon after,

it announced it would cut as many as 4,000 additional positions. Late that year it expanded its storage offerings when it

agreed to resell systems from EMC.

 

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Looking to grow its services unit, Dell acquired Microsoft software support specialist Plural in 2002. The following year

the company shortened its name to simply Dell Inc.

Dell stepped down as CEO in mid-July 2004. Company president Kevin Rollins filled the position; Dell remained chairman

of the company.

In 2006 the company announced plans to open display-only retail locations in Dallas and New York. (The Dallas store

opened, but plans for the New York location were put on hold.) It also added search giant Google to its list of server

customers.

Early in 2007, Rollins resigned as CEO and as a member of the board of directors, and Dell reassumed the role of CEO.

  Industry Information

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First Research Industry Profiles⋅ Computer Manufacture (primary)⋅ Telecommunications Equipment Manufacturers

Hoover's Industries⋅ Computer Hardware

⋅ Mass Storage Systems⋅ Workstations & Thin Clients⋅ Servers & Mainframes⋅ Personal Computers (primary)⋅ Computer Networking Equipment

⋅ Routing & Switching Equipment⋅ Supercomputers⋅ Computer Peripherals

⋅ Printing & Imaging Equipment⋅ Specialized Computer Systems

⋅ Point-Of-Sale & Electronic Retail Systems⋅ Computer Software

⋅ Storage & Systems Management Software⋅ Computer Services

⋅ Information Technology Services

Primary SIC Code3571: Electronic computers

Primary NAICS Code334111: Electronic Computer Manufacturing

  Officers and Employees

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CORPORATE OFFICERSTitle Name Age Salary BonusChairman and CEO Mr. Michael S. Dell 43 $950,000 -SVP and CFO Mr. Brian T. Gladden - - -SVP and CIO; President, Global Services Mr. Stephen F. (Steve)

Schuckenbrock47 - -

SVP and Chief Marketing Officer Mr. Mark Jarvis 44 $173,077 $250,000SVP Business Product Group Mr. Bradley R. (Brad)

Anderson48 - -

SVP; President, Americas Mr. Paul D. Bell 47 $594,231 -SVP, Business Product Group Mr. Jeffrey W. (Jeff)

Clarke45 - -

SVP Human Resources Mr. Andrew C. (Andy)Esparza

49 - -

SVP; President, Asia Pacific and Japan Mr. Stephen J. Felice 50 $491,346 -SVP, Worldwide Procurement and Global CustomerExperience

Mr. Martin J. Garvin 53 - -

SVP, Product Group Mr. Alexander (Alex)Gruzen

43 - -

SVP; President, Europe, Middle East, and Africa Mr. David A. Marmonti 48 - -SVP, Worldwide Procurement and Global CustomerExperience

Mr. Glenn E. Neland 57 - -

SVP, General Counsel, and Secretary Mr. Lawrence P. (Larry) Tu 53 - -VP, Engineering Strategy Mr. Rick Becker - - -VP, K-12 Ms. Karen Bruett - - -VP Corporate Responsibility Mr. Gilbert F. Casellas 55 - -VP, Global Branding Mr. Shawn Dennis - - -VP, South Asia Mr. Paul-Henri Ferrand - - -VP, Worldwide Enterprise Marketing, Product Group Mr. Paul Gottsegen - - -VP Americas Finance Ms. Joan S. Hooper - - -VP, Customer Experience Mr. Richard L. (Dick)

Hunter55 - -

VP; General Manager, Latin America Mr. Terry Kahler - - -VP, Strategy Mr. Timothy W. Mattox - - -VP, Dell Services Mr. Steve Meyer - - -VP, SMB Group Mr. Frank Muehleman - - -VP, Higher Education Business Mr. John Mullen - - -VP, Enterprise Engineering Mr. Forrest Norrod - - -VP Corporate Group Communications Mr. Robert (Bob) Pearson 45 - -VP and General Manager, Americas International Mr. Lawrence A. Pentland - - -VP, Imaging and Printing Mr. Tim Peters - - -VP North Carolina Operations Mr. Mehran Ravanpay - - -VP and General Manager, Corporate Business Group Mr. Bill Rodrigues - - -VP Finance and Chief Accounting Officer Mr. Thomas W. Sweet 47 - -VP; General Manager, Dell Storage Mr. Darren Thomas - - -VP, Investor Relations and Global CorporateCommunications

Ms. Lynn A. Tyson - - -

VP, Federal Business Segment Mr. Troy West - - -President, Global Operations Mr. Michael R. Cannon 55 $646,154 $2,000,000President, Global Consumer Group Mr. Ronald G. (Ron)

Garriques44 $659,615 $3,500,000

 

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Title Name Age Salary BonusPresident, Dell China Mr. Amit Midha - - -Event Marketing Manager Ms. Anita Blackwood - - -Director, Business Development and Global Alliances Ms. Judy Chavis - - -Head, Worldwide Procurement Mr. Richard Conrad - - -Director, Oklahoma City Ms. Brenda Hudson - - -Director, Business Marketing, Dell EMEA Mr. Jeff Kimbell - - -Director, Mobile Product Marketing Ms. Gretchen Miller - - -Director, Engineering, Enterprise Product Group Mr. Reza Rooholamini - - -

BOARD MEMBERSTitle Name AgeChairman and CEO Mr. Michael S. Dell 43Director Mr. Donald J. Carty Jr. 61Director Mr. William H. (Bill) Gray III 66Director Ms. Sallie L. Krawcheck 43Director Mr. Alan G. (A.G.) Lafley 61Director Ms. Judy C. Lewent 59Director Mr. Thomas W. Luce III 67Director Mr. Klaus S. Luft 66Director Mr. Alex J. Mandl 64Director Mr. Michael A. Miles 68Director Mr. Samuel A. Nunn Jr. 69

  Biographies

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BIOGRAPHIES

Stephen F. (Steve) Schuckenbrock, Age 47Title held since 2007: SVP and CIO; President, Global Services

Other Company AffiliationsCompany Title Salary Bonus

Staples, Inc. Director - -

Electronic Data Systems Corporation Co-COO and EVP Global Sales

and Client Solutions

666,667.00 750,000.00

The Feld Group, Inc. COO, Feld Group Consulting - -

Electronic Data Systems Corporation EVP Global Sales and Client

Solutions

600,000.00 470,000.00

Recent Work Highlights⋅ 2007 - 2007: SVP, Global Services

BiographyStephen F. Schuckenbrock serves as senior vice president and president, Global Services, and Dell's chief information

officer (CIO). Mr. Schuckenbrock leads Dell's multi-billion dollar services business with worldwide responsibility for Dell's

enterprise service offerings. As CIO, Mr. Schuckenbrock's responsibilities span Dell's global information systems and

technology infrastructure. His dual roles provide greater insight into how to architect services and solutions that will

help simplify IT for customers and for Dell. Prior to joining Dell, Mr. Schuckenbrock served as co-chief operating officer

and executive vice president of global sales and services for EDS. Before joining EDS in 2003, he was chief operating

officer of The Feld Group, an IT consulting organization. Serving as global chief information officer for PepsiCo from

1998 to 2000, Mr. Schuckenbrock developed and established the Business Solutions Group. Additionally with PepsiCo, he

served as global chief information officer for Frito-Lay from 1995 to 1998. Mr. Schuckenbrock earned a bachelor's degree

in business administration from Elon University.

Source: Company Web Site, 2007

Michael S. Dell, Age 43Title held since 2008: Chairman and CEO

Recent Work Highlights⋅ 2007 - 2008: Chairman and CEO, $950,000 salary, $0 bonus

⋅ 2006 - 2007: Chairman, $950,000 salary, $1,805,000 bonus

⋅ 2005 - 2006: Chairman, $950,000 salary, $2,280,000 bonus

⋅ 2004 - 2005: Chairman, $950,000 salary, $2,052,000 bonus

⋅ 2003 - 2004: Chairman and CEO, $950,000 salary, $2,479,500 bonus

⋅ 2002 - 2003: Chairman and CEO, $925,962 salary, $347,236 bonus

⋅ 2001 - 2002: Chairman and CEO, $892,308 salary, $1,668,462 bonus

Biography

 

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Michael Dell, born in February 1965, is the chairman of the Board of Directors and chief executive officer of Dell, the

company he founded in 1984 with $1,000 and an unprecedented idea - to build relationships directly with customers. In

1992, Mr. Dell became the youngest CEO ever to earn a ranking on the Fortune 500. Mr. Dell is the author of Direct From

Dell: Strategies That Revolutionized an Industry, his story of the rise of the company and the strategies he has refined

that apply to all businesses. In 1998, Mr. Dell formed MSD Capital, and in 1999, he and his wife formed the Michael and

Susan Dell Foundation, to manage the investments and philanthropic efforts, respectively, of the Dell family. Mr. Dell

serves on the Foundation Board of the World Economic Forum, the executive committee of the International Business

Council and is a member of the U.S. Business Council. Mr. Dell also serves on the U.S. President's Council of Advisors on

Science and Technology and the governing board of the Indian School of Business in Hyderabad, India.

Source: Company Web Site, 2007

Lawrence P. (Larry) Tu, Age 53Title held since 2004: SVP, General Counsel, and Secretary

Other Company AffiliationsCompany Title Salary Bonus

NBC Universal, Inc. EVP and General Counsel - -

The NBC Television Network EVP and General Counsel - -

BiographyLawrence P. Tu serves as senior vice president and general counsel, overseeing the company's global legal department.

Previously, Mr. Tu was executive vice president and general counsel at NBC Universal, one of the world's fastest growing

and most-profitable media and entertainment companies. He served in the same capacity for NBC for three years prior

to that. Earlier, he was a partner at O'Melveny & Myers LLP, where he focused on high technology, Internet and media

related transactions, including five years as managing partner of the firm's Hong Kong office. Mr. Tu was also general

counsel Asia-Pacific for Goldman Sachs, an attorney for the U.S. State Department and a clerk for U.S. Supreme Court

Justice Thurgood Marshall. Mr. Tu holds J.D. and A.B. degrees from Harvard University, as well as a bachelor of arts

degree from Oxford University, where he was a Rhodes Scholar.

Source: Company Web Site, 2007

Paul D. Bell, Age 47Title held since 2007: SVP; President, Americas

Recent Work Highlights⋅ 2006 - 2007: SVP; President, Europe, Middle East, and Africa, $547,115 salary, $520,759 bonus

⋅ 2005 - 2006: SVP; President, Europe, Middle East, and Africa, $522,115 salary, $868,799 bonus

⋅ 2004 - 2005: SVP; President, Europe, Middle East, and Africa, $497,115 salary, $687,019 bonus

⋅ 2003 - 2004: SVP; President, Europe, Middle East, and Africa, $472,115 salary, $699,422 bonus

⋅ 2002 - 2003: SVP; President, Europe, Middle East, and Africa, $444,231 salary, $188,798 bonus

BiographyPaul Bell serves as senior vice president and president, Americas. In this role he is responsible for all business

operations across the region. Prior to his current role, he served as senior vice president of Europe, Middle East

 

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and Africa where he managed all business operations and manufacturing activities in the region. Previously, he was

senior vice president and general manager of the Worldwide Home and Small Business Group. Before joining Dell

in 1996, Mr. Bell was a consultant with Bain and Company. Mr. Bell has bachelor's degrees in fine arts and business

administration from Pennsylvania State University and a master's degree in business administration from the Yale

School of Organization and Management.

Source: Company Web Site, 2007

Bradley R. (Brad) Anderson, Age 48Title held since 2005: SVP Business Product Group

Other Company AffiliationsCompany Title Salary Bonus

HP Technology Solutions Group SVP and General Manager,

Industry Standard Servers

- -

Hewlett-Packard Company SVP and General Manager,

Industry Standard Servers

- -

BiographyBrad Anderson serves as senior vice president, Business Product Group. In this role, he is responsible for worldwide

engineering, design, development and marketing of Dell's enterprise products including servers, networking and storage

systems. Prior to joining Dell in 2005, Mr. Anderson was senior vice president and general manager of Hewlett Packard's

Industry Standard Servers business. He was responsible for HP's family of HP ProLiant server solutions. Previously,

he was vice president of server storage and infrastructure for HP, where he led the team responsible for delivering

industry-leading server storage, peripheral and infrastructure products. Before joining HP in 1996, Mr. Anderson held top

management positions at Cray Research in executive staff, field marketing, sales, finance and corporate marketing. He

earned a bachelor of science in Petroleum Engineering from Texas A&M University and a MBA from Harvard University.

He serves on the Texas A&M Look College of Engineering Advisory Council.

Source: Company Web Site, 2007

Jeffrey W. (Jeff) Clarke, Age 45Title held since 2003: SVP, Business Product Group

Recent Work Highlights⋅ 2003: VP, Relationship Products Group

BiographyJeffrey Clarke serves as senior vice president, Business Product Group. In this role, he is responsible for worldwide

engineering, design, development and marketing of Dell's client products including desktops, notebooks and

workstations. Mr. Clarke joined Dell in 1987 as a quality engineer and has served in a variety of engineering and

management roles. He moved into product development in 1989 and was promoted to director of desktop development

in 1995. In 1997, Mr. Clarke was responsible for launching Dell's Precision workstation product line, which attained the No.

1 worldwide market share position. Following this role, Mr. Clarke was vice president and general manager, Relationship

Product Group, which includes the OptiPlex, Latitude and Precision lines of business. Under his leadership, all three

 

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businesses achieved the No. 1 worldwide position in their respective markets. Prior to joining Dell, Mr. Clarke served as a

reliability and product engineer at Motorola, Inc. Mr. Clarke received a bachelor's degree in electrical engineering from

the University of Texas at San Antonio.

Source: Company Web Site, 2007

Alexander (Alex) Gruzen, Age 43Title held since 2004: SVP, Product Group

Other Company AffiliationsCompany Title Salary Bonus

Hewlett-Packard Company SVP and General Manager,

Mobile Computing Global

Business Unit, Personal

Systems Group

- -

BiographyAlex Gruzen serves as senior vice president, Product Group. In this role, he is responsible along with John Medica for

worldwide development, marketing, quality and delivery into manufacturing of Dell notebooks, desktops, imaging &

printing, displays and other peripherals, as well as the strategic technology direction for Dell.

Mr. Gruzen joined Dell from Hewlett Packard where he was the senior vice president and general manager for their

Mobile Computing Global Business Unit. Previously, he held several leadership positions at Compaq Computer

Corporation and Sony Corporation, including postings in Singapore and Japan.

Mr. Gruzen holds bachelor of science and master of science degrees in Aeronautical and Astronautical Engineering from

the Massachusetts Institute of Technology, and a master of business administration degree from Harvard University.

Source: Company Web Site, 2006

Martin J. Garvin, Age 53Title: SVP, Worldwide Procurement and Global Customer Experience

BiographyMartin J. Garvin serves as senior vice president, Worldwide Procurement and Global Customer Experience. In this role,

he shares responsibility with Glenn Neland for all procurement activities and for managing the customer experience

initiative on a worldwide basis.

Prior to his current position, Mr. Garvin served as vice president of Global Supply Chain and chief procurement officer

at Dell. He was responsible for global supply chain optimization, driving for excellence in the areas of cost, quality,

availability, technology and service for all computer system commodities and sub-systems.

Mr. Garvin has extensive experience in operations, procurement, materials management and customer service, and has

held a variety of executive level positions at Hewlett Packard, Sun Microsystems and NetEdge Systems, a venture capital

 

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backed networking start-up. He also has extensive international experience, including his work on the start-up of Sun's

first international operation in Linlithgow, Scotland.

Mr. Garvin holds a master's degree in business administration and a bachelor's degree in biological sciences from

California State University at San Jose.

Source: Company Web Site, 2006

Glenn E. Neland, Age 57Title held since 2003: SVP, Worldwide Procurement and Global Customer Experience

Other Company AffiliationsCompany Title Salary Bonus

International DisplayWorks, Inc. Director - -

Recent Work Highlights⋅ 2003: VP, Worldwide Procurement

BiographyGlenn Neland serves as senior vice president, Worldwide Procurement and Global Customer Experience. In this role,

he shares responsibility with Martin Garvin for all procurement activities and for managing the customer experience

initiative on a worldwide basis.

Prior to his current position, Mr. Neland served as vice president of Worldwide Procurement Commodities where he

was responsible for global supply chain optimization, driving for excellence in the areas of cost, quality, availability,

technology and service for all computer system commodities and sub-systems. During his tenure at Dell, Mr. Neland has

also been responsible for notebook operations and portables procurement.

Before joining Dell in October 1997, Mr. Neland held various positions over a 19-year period at Texas Instruments,

including general manager for Notebook Computers, vice president and general manager of Printing Systems as well as

other operations and engineering positions.

Mr. Neland earned a bachelor's degree in electrical engineering from the University of Illinois.

Source: Company Web Site, 2006

Stephen J. Felice, Age 50Title held since 2007: SVP; President, Asia Pacific and Japan

Recent Work Highlights⋅ 2005 - 2007: VP, Asia Pacific and Japan

BiographyStephen J. Felice serves as senior vice president and president, Asia-Pacific and Japan (APJ). Mr. Felice leads Dell's

operations throughout the region. Prior to his current role, Mr. Felice was vice president, Corporate Business Group, Dell

 

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Americas, responsible for corporate customers in the United States with more than 3,500 employees and those with

global requirements. Previously, he held various executive roles in Dell's sales and consulting services organizations.

Mr. Felice joined Dell in 1999 from DecisionOne Corp., where he served as chief executive officer and president. Under

Mr. Felice's guidance, that company became the largest independent provider of multivendor computer-maintenance

and technology-support services in North America. Mr. Felice also worked for Bell Atlantic and served as vice president,

planning and development, with Bell Atlantic Customer Services. He spent five years with Shell Oil in Houston. Mr.

Felice holds a bachelor's degree in business administration from the University of Iowa and a master of business

administration degree from the University of Houston.

Source: Company Web Site, 2007

Terry KahlerTitle: VP; General Manager, Latin America

BiographyTerry Kahler serves as vice president and general manager for Dell's Latin American business unit. A professional with

20 years of industry experience, Terry Kahler co-leads the Latin America organization with Peter Wiegandt and is the

executive lead for Panama.

Prior to this role, Mr. Kahler served as vice president and general manager for Brazil, Argentina and Chile. He also spent

two years as vice president in charge of Services and Operations for Latin America.

Before joining the Dell team in August 1999, Mr. Kahler served as vice-president of Strategic Alliances at DecisionOne

Corporation. His role was to maintain key relationships with computer equipment manufacturers, software developers,

Internet service providers, and computer resellers, helping DecisionOne become one of the primary providers of

computer-related services in the Industry.

Mr. Kahler spent most of his "high-tech" career at MicroAge, Inc., a Fortune-500 reseller out of Phoenix, Arizona, in

a variety of roles including services and small-medium businesses. As vice-president and general manager of Client

Services, he managed areas related to services such as help desk, field services, asset management, network, business

continuity, packaged services, and reseller support services.

Mr. Kahler was educated in business administration at Midwestern State University in Wichita Falls, Texas, and theology

at Baptist Bible College in Springfield, Missouri. Mr. Kahler and his wife reside in Austin, Texas.

Source: Other: Publication, 2006

Bill RodriguesTitle: VP and General Manager, Corporate Business Group

Other Company AffiliationsCompany Title Salary Bonus

Dell Corporation Limited General Manager, Dell UK and

Global EMEA

- -

 

call: 1-866-541-3770 | visit: www.hoovers.com July 2008 | 15

BiographyBill Rodrigues serves as vice president and general manager of Dell's Corporate Business Group, responsible for the

sales and support of medium, large and global corporate customers headquartered in the US. Mr. Rodrigues' previous

roles at Dell included vice president and general manager for Dell's Large Business segment, managing Dell's UK

business, vice president and general manager of the education and health care segment, and vice president and general

manager of K-12 education. Mr. Rodrigues is a member of Dell's Global Executive Management Committee and reports

to Kevin Rollins, CEO. Prior to joining Dell, Mr. Rodrigues spent 21 years at IBM in various executive roles, including

general manager for global education in North America, general manager of IBM's AS/400 brand marketing in North

America, director of AS/400 world wide distribution, and executive aide to Louis V. Gerstner Jr., chairman and chief

executive officer of IBM, among other management positions. Mr. Rodrigues earned a Bachelor of Arts degree from

Rollins College.

Source: Company Web Site, 2007

Joan S. HooperTitle held since 2007: VP Americas Finance

Other Company AffiliationsCompany Title Salary Bonus

FreeMarkets, Inc. EVP, CFO, Treasurer, and

Secretary

287,500.00 100,000.00

FreeMarkets, Inc. EVP, CFO, Treasurer, and

Secretary

268,750.00 165,000.00

Recent Work Highlights⋅ 2005 - 2007: VP, Finance and Chief Accounting Officer

⋅ 2003 - 2005: VP, Finance

BiographySince joining Dell in November 2003, Ms. Hooper has served as Vice President, Finance, supporting Worldwide

Operations finance, which includes manufacturing, procurement, product group, information technology and global

financial services. Prior to joining Dell, she spent four years as Executive Vice President, Chief Financial Officer,

Secretary and Treasurer of FreeMarkets, Inc., then a global provider of online business sourcing software and

services. In addition, Ms. Hooper spent more than 20 years with AT&T Corp., where she held several key financial and

senior management positions. She holds a bachelor's degree in Finance from Creighton University, an M.B.A. from

Northwestern University, and is both a Certified Public Accountant and a Certified Management Accountant.

Source: 8K, February 2, 2005

Lynn A. TysonTitle: VP, Investor Relations and Global Corporate Communications

BiographyLynn A. Tyson serves as vice president, Investor Relations and Global Corporate Communications. In this role, she is

responsible for Dell's relationships with investors and financial analysts, and strategic direction and global oversight of

 

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Corporate Communications. Prior to joining Dell in April 2000, Ms. Tyson served as vice president of Investor Relations

for Tricon Global Restaurants (now YUMBrands!). Tricon encompasses the worldwide operations of Pizza Hut, KFC

and Taco Bell, and was spun off from PepsiCo, Inc. in 1997. Previously, Ms. Tyson spent 12 years at PepsiCo, holding

various positions in treasury, international corporate finance and investor relations, where she assisted in planning and

execution of the spin-off of Tricon from PepsiCo. Ms. Tyson received a bachelor's degree in psychology from The City

College of New York and a master's degree in finance/international business from The Stern School of Business, New

York University. She is on the Board of Directors for the National Investor Relations Institute (NIRI). Ms. Tyson is also a

member of the Executive Leadership Council and the National Society of Black MBAs.

Source: Company Web Site, 2007

Richard L. (Dick) Hunter, Age 55Title held since 2006: VP, Customer Experience

Other Company AffiliationsCompany Title Salary Bonus

i2 Technologies, Inc. Director - -

Recent Work Highlights⋅ 2006: VP, Manufacturing and Distribution, Americas

BiographyRichard L. "Dick" Hunter serves as vice president of Dell's Customer Experience team. In this role, Mr. Hunter is

responsible for customer service and support as well as for Dell's global customer contact center operations in the

Americas, India and the Philippines. Previously, Mr. Hunter served as vice president of Dell Americas Operations. In

this role, he managed the day-to-day operations of Dell's manufacturing facilities in Austin, TX; Nashville, TN; Winston-

Salem, NC; and Eldorado de Sul, Brazil. He also led the Americas Remanufacturing and Returns Center Operations,

Worldwide Fulfillment, Engineering and Quality, Demand-Supply, and the Environmental Health and Safety groups.

Before that, Mr. Hunter held leadership roles in Portables manufacturing, supply chain management, and the Austin

manufacturing operations organizations. Prior to joining Dell in February 1998, Mr. Hunter worked for General Electric,

Texas Instruments and Ericcson. He has more than 25 years of experience in high tech, manufacturing operations and

supply chain management. Mr. Hunter graduated from the Georgia Institute of Technology with a degree in Mechanical

Engineering. He serves on the Tennessee State University Supply Chain Management Governing Board and on the

Massachusetts Institute of Technology Leaders for Manufacturing Governing Board.

Source: Company Web Site, 2006

Rick BeckerTitle held since 2006: VP, Engineering Strategy

Other Company AffiliationsCompany Title Salary Bonus

HP Technology Solutions Group VP and General Manager,

HP BladeSystem, Industry

Standard Server CTO

- -

 

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BiographyRick Becker, who was general manager of HP's fast growing "blade" server business, to be an engineering vice president

in charge of strategy working with partners like Oracle and SAP for corporate customers.

Source: Company Press Release, December 12, 2006

Donald J. Carty Jr., Age 61Title held since 2008: Director

Other Company AffiliationsCompany Title Salary Bonus

Hawaiian Holdings, Inc. Director - -

Barrick Gold Corporation Director - -

Sears Holdings Corporation Director - -

Placer Dome Inc. Director - -

CHC Helicopter Corporation Director - -

Brinker International, Inc. Director - -

Sears, Roebuck and Co. Director - -

AMR Corporation Chairman and CEO, AMR and

American Airlines

585,813.00 -

SolutionInc Technologies Limited Director - -

Virgin America Chairman - -

Air Serv Corporation Director - -

Hawaiian Holdings, Inc. Director - -

Recent Work Highlights⋅ 2008 - 2008: Vice Chairman and CFO, $766,346 salary

⋅ 2007 - 2008: Vice Chairman and CFO, $51,154 salary, $0 bonus

⋅ 2007: Director

BiographyMr. Carty joined us as Vice Chairman and Chief Financial Officer in January 2007. In that role, he is responsible for

all finance functions, including controller, corporate planning, tax, treasury operations, investor relations, corporate

development, risk management, and internal audit. He will resign as Vice Chairman and Chief Financial Officer effective

June 13, 2008. Mr. Carty has served as a member of our Board of Directors since 1992 and continues to serve in that

capacity. Mr. Carty was the Chairman and Chief Executive Officer of AMR Corporation and American Airlines from 1998

until his retirement in 2003. He served in a variety of executive positions with AMR Airline Group and American Airlines

from 1978 to 1985 and from 1987 to 1999. Mr. Carty was President and Chief Executive Officer of CP Air in Canada from

1985 to 1987. After his retirement from AMR and American in 2003, Mr. Carty was engaged in numerous business and

private investment activities with a variety of companies. Mr. Carty is a graduate of Queen's University in Kingston,

Ontario and of the Harvard Graduate School of Business Administration. He is also a director of CHC Helicopter Corp.,

Barrick Gold Corporation and Hawaiian Holdings L.L.C.

Source: Proxy, June 2, 2008

  Significant Developments

call: 1-866-541-3770 | visit: www.hoovers.com July 2008 | 18

Date Event Details

2007-01-31 Top Executive Change Michael S. Dell succeeded Kevin B. Rollins, who resigned.

  Competitors

call: 1-866-541-3770 | visit: www.hoovers.com July 2008 | 19

TOP COMPETITORS

⋅ Acer

⋅ Hewlett-Packard

⋅ Lenovo

ALL COMPETITORS

⋅ 3Com

⋅ Acer

⋅ Apple

⋅ Brother Industries

⋅ Canon

⋅ CDW

⋅ Cisco Systems

⋅ EMC

⋅ Enterasys

⋅ Extreme Networks

⋅ Fujitsu Siemens Computers

⋅ Gateway, Inc.

⋅ Hewlett-Packard

⋅ Hitachi Data Systems

⋅ Hitachi

⋅ IBM

⋅ Lenovo

⋅ Matsushita Electric

⋅ MPC Computers

⋅ NEC

⋅ Epson

⋅ SGI

⋅ Sony

⋅ Sun Microsystems

⋅ Toshiba

⋅ Unisys

  Products and Operations

call: 1-866-541-3770 | visit: www.hoovers.com July 2008 | 20

2008 Sales

$ mil. % of total

Americas

Business 31,144 51

US Consumer 6,224 10

Europe, Middle East & Africa 15,267 25

Asia/Pacific 8,498 14

Total 61,133 100

2008 Sales

$ mil. % of total

Desktop PCs 19,573 32

Mobility 17,423 28

Software & peripherals 9,908 16

Servers & networking 6,474 11

Enhanced services 5,320 9

Storage 2,435 4

Total 61,133 100

Selected Products

⋅ Computers

⋅ Desktop (Dimension, OptiPlex, Vostro, XPS)

⋅ Notebook (Inspiron, Latitude, Vostro, XPS)

⋅ Enterprise systems

⋅ Network servers (PowerApp, PowerEdge)

⋅ Storage (PowerVault)

⋅ Workstations (Precision)

⋅ Ethernet switches (PowerConnect)

⋅ Point-of-sale systems

⋅ Printers

⋅ Inkjet multifunction

⋅ Laser

⋅ Projectors

⋅ Refurbished systems

⋅ Third-party peripherals and software

  Company Financials

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FINANCIAL OVERVIEWCompany Type Public - NASDAQ (GS): DELLLocation Type HeadquartersFiscal Year-End JanuaryFinancial Filings SEC2008 Sales (mil.) $61,133.01-Year Sales Growth 6.5%2008 Net Income (mil.) $2,947.01-Year Net Income Growth 14.1%Auditor PricewaterhouseCoopers LLPAnnual Report Company WebsiteInvestor Relations Company Website

ANNUAL INCOME STATEMENT

All amounts in millions of US Dollars unless otherwise noted.

Jan 2008 Jan 2007 Jan 2006

Revenue 61,133.0 57,420.0 55,908.0

Cost of Goods Sold 49,462.0 47,904.0 45,958.0

Gross Profit 11,671.0 9,516.0 9,950.0

Gross Profit Margin 19.1% 16.6% 17.8%

SG&A Expense 7,624.0 5,975.0 5,210.0

Depreciation and Amortization 607.0 471.0 393.0

Operating Income 3,440.0 3,070.0 4,347.0

Operating Margin 5.6% 5.3% 7.8%

Nonoperating Income 461.0 343.0 255.0

Nonoperating Expenses 45.0 45.0 28.0

Income Before Taxes 3,827.0 3,345.0 4,574.0

Income Taxes 880.0 762.0 1,002.0

Net Income After Taxes 2,947.0 2,583.0 3,572.0

Continuing Operations 2,947.0 2,583.0 3,572.0

Discontinued Operations -- -- --

Total Operations 2,947.0 2,583.0 3,572.0

Total Net Income 2,947.0 2,583.0 3,572.0

Net Profit Margin 4.8% 4.5% 6.4%

Diluted EPS from Continuing Operations ($) -- -- --

Diluted EPS from Discontinued Operations ($) -- -- --

Diluted EPS from Total Operations ($) -- -- --

Diluted EPS from Total Net Income ($) 1.31 1.14 1.46

Dividends per Share -- -- --

QUARTERLY INCOME STATEMENT

All amounts in millions of US Dollars unless otherwise noted.

 

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Quarter

Ending

Apr 2008

Quarter

Ending

Jan 2008

Quarter

Ending

Oct 2007

Quarter

Ending

Jul 2007

Quarter

Ending

Apr 2007

Revenue 16,077.0 15,989.0 15,646.0 14,776.0 14,722.0

Cost of Goods Sold 13,112.0 12,995.0 12,758.0 11,825.0 11,884.0

Gross Profit 2,965.0 2,994.0 2,888.0 2,951.0 2,838.0

Gross Profit Margin 18.4% 18.7% 18.5% 20.0% 19.3%

SG&A Expense 1,881.0 2,035.0 1,906.0 1,910.0 1,773.0

Depreciation and Amortization 185.0 183.0 153.0 139.0 132.0

Operating Income 899.0 776.0 829.0 902.0 933.0

Operating Margin 5.6% 4.9% 5.3% 6.1% 6.3%

Nonoperating Income 137.0 180.0 107.0 96.0 78.0

Nonoperating Expenses 12.0 45.0 -- -- --

Income Before Taxes 1,024.0 882.0 936.0 998.0 1,011.0

Income Taxes 240.0 203.0 170.0 252.0 255.0

Net Income After Taxes 784.0 679.0 766.0 746.0 756.0

Continuing Operations 784.0 679.0 766.0 746.0 756.0

Discontinued Operations -- -- -- -- --

Total Operations 784.0 679.0 766.0 746.0 756.0

Total Net Income 784.0 679.0 766.0 746.0 756.0

Net Profit Margin 4.9% 4.2% 4.9% 5.0% 5.1%

Diluted EPS from Continuing Operations ($) -- -- -- -- --

Diluted EPS from Discontinued Operations ($) -- -- -- -- --

Diluted EPS from Total Operations ($) -- -- -- -- --

Diluted EPS from Total Net Income ($) 0.38 0.31 0.34 0.32 0.34

Dividends per Share -- -- -- -- --

ANNUAL BALANCE SHEETAll amounts in millions of US Dollars unless otherwise noted.

Assets Jan 2008 Jan 2007 Jan 2006Current AssetsCash 7,972.0 10,298.0 9,058.0Net Receivables 7,693.0 6,152.0 5,452.0Inventories 1,180.0 660.0 576.0Other Current Assets 3,035.0 2,829.0 2,620.0Total Current Assets 19,880.0 19,939.0 17,706.0Net Fixed Assets 2,668.0 2,409.0 2,005.0Other Noncurrent Assets 5,013.0 3,287.0 3,398.0Total Assets 27,561.0 25,635.0 23,109.0

Liabilities and Shareholder's Equity Jan 2008 Jan 2007 Jan 2006Current LiabilitiesAccounts Payable 11,591.0 12,432.0 10,657.0

 

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Liabilities and Shareholder's Equity Jan 2008 Jan 2007 Jan 2006Current LiabilitiesShort-Term Debt 225.0 188.0 --Other Current Liabilities 6,710.0 5,171.0 5,270.0Total Current Liabilities 18,526.0 17,791.0 15,927.0Long-Term Debt 362.0 569.0 504.0Other Noncurrent Liabilities 4,844.0 2,836.0 2,549.0Total Liabilities 23,732.0 21,196.0 18,980.0

Shareholder's Equity Jan 2008 Jan 2007 Jan 2006Preferred Stock Equity 94.0 111.0 --Common Stock Equity 3,735.0 4,328.0 4,129.0Total Equity 3,735.0 4,328.0 4,129.0Shares Outstanding (mil.) 2,060.0 2,226.0 2,330.0

QUARTERLY BALANCE SHEET

All amounts in millions of US Dollars unless otherwise noted.

Assets Quarter

Ending

Apr 2008

Quarter

Ending

Jan 2008

Quarter

Ending

Oct 2007

Quarter

Ending

Jul 2007

Quarter

Ending

Apr 2007

Current Assets

Cash 8,501.0 7,972.0 12,605.0 11,862.0 10,179.0

Net Receivables 7,550.0 7,693.0 7,716.0 6,827.0 6,243.0

Inventories 1,258.0 1,180.0 1,102.0 973.0 764.0

Other Current Assets 3,193.0 3,035.0 2,925.0 2,552.0 2,585.0

Total Current Assets 20,502.0 19,880.0 24,348.0 22,214.0 19,771.0

Net Fixed Assets 2,642.0 2,668.0 2,631.0 2,608.0 2,452.0

Other Noncurrent Assets 4,875.0 5,013.0 3,401.0 3,232.0 3,321.0

Total Assets 28,019.0 27,561.0 30,380.0 28,054.0 25,544.0

Liabilities and Shareholder's Equity Quarter

Ending

Apr 2008

Quarter

Ending

Jan 2008

Quarter

Ending

Oct 2007

Quarter

Ending

Jul 2007

Quarter

Ending

Apr 2007

Current Liabilities

Accounts Payable 14,720.0 11,591.0 17,784.0 16,738.0 15,350.0

Short-Term Debt 131.0 225.0 266.0 328.0 334.0

Other Current Liabilities 2,518.0 6,710.0 -- -- --

Total Current Liabilities 17,369.0 18,526.0 18,050.0 17,066.0 15,684.0

Long-Term Debt 1,848.0 362.0 392.0 378.0 381.0

Other Noncurrent Liabilities 5,256.0 4,844.0 4,993.0 4,566.0 4,289.0

Total Liabilities 24,473.0 23,732.0 23,435.0 22,010.0 20,354.0

 

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Shareholder's Equity Quarter

Ending

Apr 2008

Quarter

Ending

Jan 2008

Quarter

Ending

Oct 2007

Quarter

Ending

Jul 2007

Quarter

Ending

Apr 2007

Preferred Stock Equity 92.0 94.0 101.0 116.0 119.0

Common Stock Equity 3,454.0 3,735.0 6,844.0 5,928.0 5,071.0

Total Equity 3,454.0 3,735.0 6,844.0 5,928.0 5,071.0

Shares Outstanding (mil.) 2,020.9 2,060.0 2,237.0 2,231.0 2,231.0

ANNUAL CASH FLOWAll amounts in millions of US Dollars unless otherwise noted.

Jan 2008 Jan 2007 Jan 2006Net Operating Cash Flow 3,949.0 3,969.0 4,839.0Net Investing Cash Flow (1,763.0) 1,003.0 3,878.0Net Financing Cash Flow (4,120.0) (2,551.0) (6,226.0)Net Change in Cash (1,782.0) 2,492.0 2,295.0Depreciation & Amortization 607.0 471.0 393.0Capital Expenditures (831.0) (896.0) (728.0)Cash Dividends Paid -- -- --

QUARTERLY CASH FLOW

All amounts in millions of US Dollars unless otherwise noted.

Apr 2008 Jan 2008 Oct 2007 Jul 2007 Apr 2007

Net Operating Cash Flow 143.0 1,197.0 998.0 1,853.0 (99.0)

Net Investing Cash Flow (30.0) (1,678.0) 36.0 86.0 (207.0)

Net Financing Cash Flow 387.0 (4,034.0) (70.0) (3.0) (13.0)

Net Change in Cash 509.0 (4,472.0) 1,032.0 1,944.0 (286.0)

Depreciation & Amortization 185.0 183.0 153.0 139.0 132.0

Capital Expenditures (122.0) (195.0) (172.0) (293.0) (171.0)

Cash Dividends Paid -- -- -- -- --

HISTORICAL FINANCIALS

Income StatementYear Revenue ($ mil.) Net Income ($ mil.) Net Profit Margin ($

mil.)

Employees

Jan 2008 61,133.00 2,947.00 4.8% 88,200

Jan 2007 57,420.00 2,583.00 4.5% 90,500

Jan 2006 55,908.00 3,572.00 6.4% 66,100

Jan 2005 49,205.00 3,043.00 6.2% 56,000

Jan 2004 41,444.00 2,645.00 6.4% 46,000

Jan 2003 35,404.00 2,122.00 6.0% 39,100

Jan 2002 31,168.00 1,246.00 4.0% 34,600

Jan 2001 31,888.00 2,177.00 6.8% 40,000

 

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Year Revenue ($ mil.) Net Income ($ mil.) Net Profit Margin ($

mil.)

Employees

Jan 2000 25,265.00 1,666.00 6.6% 36,500

Jan 1999 18,243.00 1,460.00 8.0% 24,400

2008 Year-End FinancialsDebt Ratio 9.7%

Return on Equity 78.9%

Cash ($ mil) 7,972.00

Current Ratio 1.07

Long-Term Debt ($ mil.) 362.00

Shares Outstanding (mil.) 2,060.0

Dividend Yield --

Dividend Payout --

Market Cap ($ mil.) 41,921.0

Stock History

Stock Price ($) P/E Per Share ($)

Year FY High FY Low FY Close High Low Earns. Div. Book Value

Jan 2008 30.77 18.87 20.35 23 14 1.31 -- 1.81

Jan 2007 32.24 18.95 23.52 28 17 1.14 -- 1.94

Jan 2006 41.99 28.62 29.26 29 20 1.46 -- 1.77

Jan 2005 42.57 31.14 41.06 36 26 1.18 -- 2.61

Jan 2004 37.18 22.59 33.44 37 22 1.01 -- 2.46

Jan 2003 31.06 21.90 23.86 39 27 0.80 -- 1.89

Jan 2002 30.52 16.01 26.80 66 35 0.46 -- 1.80

MARKET DATA

Current Information

Last Close (11-Jul-2008) $22.31 Price/Sales Ratio 0.72

52-Week High $30.77 Price/Book Ratio 13.05

52-Week Low $18.13 Price/Earnings Ratio 16.17

60-Month Beta 1.2 Price/Cash Flow Ratio 10.76

Market Cap (mil.) $45,087.33 Return on Assets 0.0%

Shares Outstanding (mil.) 2,020.9 Return on Equity 0.0%

Dividend Rate -- Current Ratio 1.18

Dividend Yield -- Long-Term Debt/Equity 0.57

# of Institutional Holders 854 % Owned by Institutions 69.0%

 

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Current Information

Latest Short Interest Ratio 1.15 Latest Net Insider Transactions --

Growth Rates 12 Month 36 Month 60 Month

Revenue Growth 8.1% 22.4% 69.5%

EPS Growth 20.0% 6.2% 58.6%

Dividend Growth 0.0% 0.0% 0.0%

COMPARISON DATA

Profitability Company Industry Market

Gross Profit Margin 18.90% 33.80% 52.40%

Pre-Tax Profit Margin 6.10% 4.60% 5.50%

Net Profit Margin 4.80% 3.70% 3.80%

Return on Equity 69.8% 11.0% 7.9%

Return on Assets 11.1% 3.9% 1.1%

Return on Invested Capital 28.4% 6.2% 3.6%

Valuation Company Industry Market

Price/Sales Ratio 0.72 1.14 1.52

Price/Earnings Ratio 16.17 16.32 15.01

Price/Book Ratio 13.05 1.96 1.44

Price/Cash Flow Ratio 10.76 11.69 9.37

Operations Company Industry Market

Days of Sales Outstanding 44.10 69.45 57.89

Inventory Turnover 50.1 4.5 5.7

Days Cost of Goods Sold in

Inventory7 81 64

Asset Turnover 2.3 1.0 0.6

Net Receivables Turnover

Flow9.1 5.4 6.6

Effective Tax Rate 22.5% 23.1% 28.4%

Financial Company Industry Market

Current Ratio 1.18 2.04 1.64

Quick Ratio 1.1 1.4 1.2

Leverage Ratio 0.07 0.22 0.25

Total Debt/Equity 0.57 0.44 0.69

 

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Financial Company Industry Market

Interest Coverage 68.37 11.19 5.38

Per Share Data ($) Company Industry Market

Revenue Per Share 30.92 7.33 5.41

Fully Diluted Earnings Per

Share from Total Operations-- -- --

Dividends Per Share -- 0.50 0.69

Cash Flow Per Share 2.07 0.39 0.32

Working Capital Per Share 1.55 2.52 0.46

Long-Term Debt Per Share 0.91 1.76 2.60

Book Value Per Share 1.71 4.19 4.95

Total Assets Per Share 13.86 7.27 10.12

Growth Company Industry Market

12-Month Revenue Growth 8.1% 12.5% 8.8%

12-Month Net Income Growth 16.1% 16.7% 6.5%

12-Month EPS Growth 20.0% 18.1% 6.2%

12-Month Dividend Growth 0.0% 0.0% 0.0%

36-Month Revenue Growth 22.4% 40.8% 34.8%

36-Month Net Income

Growth(8.3%) 81.0% 30.9%

36-Month EPS Growth 6.2% 72.3% 28.2%

36-Month Dividend Growth 0.0% 0.0% 0.0%

COMPETITIVE LANDSCAPEKEY: Best of Group. Companies listed are Top Competitors.

Key Numbers Dell Acer Hewlett-

Packard

Lenovo

Annual Sales ($

mil.)61,133.0 11,323.8 104,286.0 16,352.0 -- --

Employees 88,200 5,964 -- 2,000 -- --

Market Cap ($

mil.)45,087.3 -- 102,852.1 -- -- --

 

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Profitability Dell Acer Hewlett-

Packard

Lenovo Industry Market

Gross Profit

Margin18.90% -- 24.70% -- 33.80% 52.40%

Pre-Tax Profit

Margin6.10% -- 9.30% -- 4.60% 5.50%

Net Profit

Margin4.80% -- 7.40% -- 3.70% 3.80%

Return on

Equity69.8% -- 21.8% -- 11.0% 7.9%

Return on

Assets11.1% -- 9.3% -- 3.9% 1.1%

Return on

Invested Capital28.4% -- 15.3% -- 6.2% 3.6%

Valuation Dell Acer Hewlett-

Packard

Lenovo Industry Market

Price/Sales

Ratio0.72 -- 0.93 -- 1.14 1.52

Price/Earnings

Ratio16.17 -- 13.04 -- 16.32 15.01

Price/Book

Ratio13.05 -- 2.69 -- 1.96 1.44

Price/Cash Flow

Ratio10.76 -- 7.64 -- 11.69 9.37

Operations Dell Acer Hewlett-

Packard

Lenovo Industry Market

Days of Sales

Outstanding44.10 -- 53.38 -- 69.45 57.89

Inventory

Turnover50.1 -- 11.1 -- 4.5 5.7

Days Cost of

Goods Sold in

Inventory

7 -- 33 -- 81 64

Asset Turnover 2.3 -- 1.3 -- 1.0 0.6

Net Receivables

Turnover Flow9.1 -- 7.3 -- 5.4 6.6

Effective Tax

Rate22.5% -- 20.8% -- 23.1% 28.4%

Financial Dell Acer Hewlett-

Packard

Lenovo Industry Market

Current Ratio 1.18 -- 1.27 -- 2.04 1.64

 

call: 1-866-541-3770 | visit: www.hoovers.com July 2008 | 29

Financial Dell Acer Hewlett-

Packard

Lenovo Industry Market

Quick Ratio 1.1 -- 1.1 -- 1.4 1.2

Leverage Ratio 0.07 -- 0.09 -- 0.22 0.25

Total Debt/

Equity0.57 -- 0.22 -- 0.44 0.69

Interest

Coverage68.37 -- 68.97 -- 11.19 5.38

Per Share Data

($)

Dell Acer Hewlett-

Packard

Lenovo Industry Market

Revenue Per

Share30.92 -- 44.76 -- 7.33 5.41

Fully Diluted

Earnings Per

Share from Total

Operations

-- -- -- -- -- --

Dividends Per

Share-- -- 0.32 -- 0.50 0.69

Cash Flow Per

Share2.07 -- 5.44 -- 0.39 0.32

Working Capital

Per Share1.55 -- 4.02 -- 2.52 0.46

Long-Term Debt

Per Share0.91 -- 3.12 -- 1.76 2.60

Book Value Per

Share1.71 -- 15.47 -- 4.19 4.95

Total Assets Per

Share13.86 -- 37.22 -- 7.27 10.12

Growth Dell Acer Hewlett-

Packard

Lenovo Industry Market

12-Month

Revenue Growth8.1% -- 13.7% -- 12.5% 8.8%

12-Month Net

Income Growth16.1% -- 27.2% -- 16.7% 6.5%

12-Month EPS

Growth20.0% -- 35.2% -- 18.1% 6.2%

12-Month

Dividend Growth0.0% -- 0.0% -- 0.0% 0.0%

36-Month

Revenue Growth22.4% -- 32.5% -- 40.8% 34.8%

36-Month Net

Income Growth(8.3%) -- 126.8% -- 81.0% 30.9%

 

call: 1-866-541-3770 | visit: www.hoovers.com July 2008 | 30

Growth Dell Acer Hewlett-

Packard

Lenovo Industry Market

36-Month EPS

Growth6.2% -- 161.5% -- 72.3% 28.2%

36-Month

Dividend Growth0.0% -- 0.0% -- 0.0% 0.0%

  Other Resources Available on Hoovers Online

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 Industry Watch

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 Historical Financials & Employees Defnitions

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