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Dell Shows Double-Digit Revenue Growth

2/17/2006 09:08:00 AM Eastern

Red Rock, Texas — Dell posted a very hefty $15.2 billion in revenue and $1 billion in net income for its fiscal fourth quarter, with sales of notebook computers, storage devices and services driving the company’s performance.

Revenue for the fourth quarter, ended Feb. 3, was 13 percent higher than the $13.5 billion posted during the same period last year, with net income showing even stronger growth, rising 52 percent from last year’s $667 million. Dell’s fourth quarter benefited from having an extra week of sales to count this year.

For the year, Dell’s revenue increased 14 percent to $55.9 billion, with net income topping $3 billion, a 17 percent increase.

Dell reported it shipped 37 million PCs last year, a 19 percent increase year-over-year, with 10.2 million of those shipments taking place in the fourth quarter. The impact of consumer and businesses switching to notebooks was evident in the 22 percent revenue increase these products enjoyed during the year. Mobility products accounted for $14.1 billion of Dell’s total revenue, with desktops bringing in $21.1 billion; however, revenue growth for desktops rose only 2 percent, compared with 19 percent for notebooks and other portable products.

Dell’s imaging and printing category was up 17 percent. During the past year the company refocused its efforts in these categories to color laser printers and inkjet-based all-in-one printers.

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