Dell 1997 Annual Report Download - page 18

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FISCAL YEAR ENDED
-----------------------------------------
FEBRUARY 1, FEBRUARY 2, JANUARY 28,
1998 1997 1996
----------- ----------- -----------
Net revenue............................................. $12,327 $7,759 $5,296
Cost of revenue......................................... 9,605 6,093 4,229
------- ------ ------
Gross margin.......................................... 2,722 1,666 1,067
------- ------ ------
Operating expenses:
Selling, general and administrative................... 1,202 826 595
Research, development and engineering................. 204 126 95
------- ------ ------
Total operating expenses...................... 1,406 952 690
------- ------ ------
Operating income.............................. 1,316 714 377
Financing and other..................................... 52 33 6
------- ------ ------
Income before income taxes and extraordinary loss..... 1,368 747 383
Provision for income taxes.............................. 424 216 111
------- ------ ------
Income before extraordinary loss...................... 944 531 272
Extraordinary loss, net of taxes........................ -- (13) --
------- ------ ------
Net income............................................ 944 518 272
Preferred stock dividends............................... -- -- (12)
------- ------ ------
Net income available to common stockholders............. $ 944 $ 518 $ 260
======= ====== ======
Basic earnings per common share (in whole dollars):
Income before extraordinary loss...................... $ 1.44 $ 0.75 $ 0.36
Extraordinary loss, net of taxes...................... -- (.02) --
------- ------ ------
Earnings per common share............................. $ 1.44 $ 0.73 $ 0.36
======= ====== ======
Diluted earnings per common share (in whole dollars):
Income before extraordinary loss...................... $ 1.28 $ 0.68 $ 0.33
Extraordinary loss, net of taxes...................... -- (.02) --
------- ------ ------
Earnings per common share............................. $ 1.28 $ 0.66 $ 0.33
======= ====== ======
Weighted average shares outstanding:
Basic................................................. 658 710 716
Diluted............................................... 738 782 790
The accompanying notes are an integral part of these consolidated financial
statements.
22
<PAGE> 24
DELL COMPUTER CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN MILLIONS)
FISCAL YEAR ENDED
---------------------------------------
FEBRUARY 1, FEBRUARY 2, JANUARY 28,
1998 1997 1996
----------- ----------- -----------
Cash flows from operating activities:
Net income............................................... $ 944 $ 518 $ 272
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization....................... 67 47 38
Other............................................... 24 29 22
Changes in:
Operating working capital............................. 529 659 (195)
Non-current assets and liabilities.................... 28 109 38
-------- ------- -------
Net cash provided by operating activities........ 1,592 1,362 175
-------- ------- -------
Cash flows from investing activities:
Marketable securities:
Purchases............................................. (12,305) (9,538) (4,545)
Maturities and sales.................................. 12,017 8,891 4,442
Capital expenditures..................................... (187) (114) (101)
-------- ------- -------
Net cash used in investing activities............ (475) (761) (204)
-------- ------- -------
Cash flows from financing activities:
Purchase of common stock................................. (1,023) (495) --
Repurchase of 11% Senior Notes........................... -- (95) --