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Dell Q1 U.S. Revenue Climbs 3%, Sales Down

5/17/2002 08:51:00 AM Eastern

Austin, Texas - Strong sales in the United States and ongoing cost cutting helped Dell Computer report slightly increased revenue in its fiscal first quarter. Profit, on the other hand, took a slight drop in the three months, primarily due to weak IT sales.

Dell recorded a 3 percent increase in U.S. revenue and a 17 percent first-quarter jump in U.S. product shipments. The Americas accounted for 69 percent of the company's revenue in the first quarter, up 1 percentage point from the year-ago three months.

Desktop computers accounted for 54 percent of Dell's revenue in the first quarter, compared with 51 percent in the same quarter in 2001. Portables accounted for 27 percent of revenue in the three months, down 3 percentage points from the year-ago period.

Overall Dell revenue was $8.1 billion it its first fiscal three months, ending May 3, up less than 1 percent, compared with $8 billion in the first quarter of 2001. Net income dipped 1.3 percent, to $457 million, down from $462 million in the year-ago three months.

Gross margin for the first quarter came in at 17.2 percent, an 80-basis-point decline from the 18 percent achieved in the first quarter of 2001. Selling, general and administrative costs, however, took a healthier turn, being reduced to 8.5 percent in the first quarter, down 70 basis point year over year.

Dell expects second-quarter industry unit shipments will be off about 5 percent, compared with the first quarter, but that revenue will drop at a larger rate. The company anticipates its second quarter revenue could be up 8 percent year over year, hitting $8.2 billion.