Dell Fis. Q3 Revenue Rises 22.5%
By Jeff Malester -- TWICE, 12/9/2002
ROUND ROCK, TEXAS — Despite the stumbling economy and cautious consumer spending, Dell Computer reported record revenue and shipments in its fiscal third quarter.
Revenue increased 22.5 percent in the three months, hitting $9.1 billion, up from $7.5 billion in the year-ago period. Sequential quarterly growth was a more modest 8.1 percent, up from $8.5 billion.
At the same time, Dell said product shipments climbed 28 percent year over year in the third quarter, ended Nov. 1, compared with a 2 percent increase for the remainder of the computer industry.
Michael Dell, chairman/CEO, said fourth quarter company shipments could increase 10 percent during the third quarter, or 23 percent from a year ago. Revenue in the fourth quarter is expected to increase about 20 percent year-on-year, to about $9.7 billion, or about 6 percent over the third quarter.
Net income in the third quarter soared 31 percent, reaching $561 million, up from $429 million in the same period in 2001. Dell said cost reductions, an improved product mix and the lower cost of components played a major role in its profit increase. The sequential increase was 12.1 percent, up from $501 million. Gross profit margin climbed 60 basis points, to 18.2 percent.
Operating income for the third quarter rose 39.3 percent, to $758 million, compared with $544 million in the year-ago three months. The sequential climb was 11.9 percent, up from $677 million.
In the third quarter, desktop computers accounted for 52 percent of Dell revenue, the same as the prior year. The notebook share dropped 1 percentage point in the third quarter, to 28 percent.
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