Dell Reports Earnings

Dell reported preliminary results for the fourth quarter of fiscal year 2007, with revenue of $14.4 billion

March 2, 2007

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ROUND ROCK, Texas -- Dell (NASDAQ:DELL - News) reported preliminary results for the fourth quarter of fiscal year 2007, with revenue of $14.4 billion, operating income of $801 million, and earnings per share of $0.30. Dell ended the quarter with $12.5 billion in cash and investments.

In the quarter, several items impacted operating income and earnings per share. First, the company will not be paying out the full amount of accrued employee bonuses due to its failure to achieve its operating targets for fiscal 2007. The reduction in the provision for employee bonuses positively impacted operating income and earnings per share by $184 million and $0.06, respectively. Second, costs associated with the ongoing investigations into certain accounting and financial reporting matters reduced operating income and earnings per share by $89 million and $0.03, respectively. And third, a one-time gain on the sale of real estate added $36 million pre-tax to financing and other income, or $0.01 per share.

"We are disappointed with the company's results, but what matters is our future plan of action. We are systematically moving to increase efficiencies, improve execution and transform the company," said Chairman and CEO Michael Dell. "Our business model will become more aligned with the needs of our customers, which will improve their experience and yield improved growth and profitability for the long-term."

Dell Inc.

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