Dell 1997 Annual Report Download - page 11

were acquired in September 1997 and the remainder of which was acquired in
February 1998. The Company intends to utilize this acreage for a manufacturing
campus and has already announced plans to construct a 300,000 square-foot server
and workstation manufacturing facility on a portion of this acreage.
International Properties -- At February 1, 1998, the Company's international
facilities consisted of (a) approximately 487,000 square feet of leased office
space in 27 countries (with lease expiration dates ranging from 1998 to 2013),
(b) a Company owned 300,000-square-foot manufacturing and warehousing facility
in Limerick, Ireland and (c) a Company owned 238,000-square-foot combination
office and manufacturing facility in Penang, Malaysia (located on land leased
until the year 2053 from the State Authority of Penang). In addition, in January
1998, the Company announced plans to acquire an additional manufacturing
facility in Limerick, Ireland. This facility consists of approximately 35 acres
of land and a building containing approximately 340,000 square feet of
manufacturing and office space. The Company expects to complete this acquisition
in April 1998 and expects to use this facility to manufacture servers and
workstations for the European region.
The Company is evaluating other opportunities to expand facilities in
anticipation of increasing needs. The Company believes that it can readily
obtain appropriate additional space as may be required at competitive rates.
ITEM 3 -- LEGAL PROCEEDINGS
The Company is subject to various legal proceedings and claims arising in the
ordinary course of business. The Company's management does not expect that the
results in any of these legal proceedings will have a material adverse effect on
the Company's financial condition, results of operations or cash flows.
ITEM 4 -- SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matter was submitted to a vote of the Company's stockholders, through the
solicitation of proxies or otherwise, during the fourth quarter of fiscal 1998.
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PART II
ITEM 5 -- MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
MARKET INFORMATION
The Company's common stock is traded on The Nasdaq National Market under the
symbol "DELL." Information regarding the market prices of the Company's common
stock may be found in Note 13 of Notes to Consolidated Financial Statements
included in "Item 8 -- Financial Statements and Supplementary Data" below.
HOLDERS
As of March 31, 1998, there were 8,891 holders of record of the Company's common
stock.
DIVIDENDS
The Company has never paid cash dividends on its common stock. The Company
intends to retain its earnings for use in its business and, therefore, does not
anticipate paying any cash dividends on the common stock for at least the next
twelve months.
On each of March 6, 1998 and July 25, 1997, the Company effected a two-for-one
common stock split by paying a 100% stock dividend to stockholders of record as
of February 27, 1998 and July 18, 1997, respectively.
ITEM 6 -- SELECTED FINANCIAL DATA
The following selected financial data should be read in conjunction with the
Consolidated Financial Statements, including the related notes, and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations."
FISCAL YEAR ENDED
-------------------------------------------------------------------
FEBRUARY 1, FEBRUARY 2, JANUARY 28, JANUARY 29, JANUARY 30,
1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- -----------
(IN MILLIONS, EXCEPT PER SHARE DATA)
Results of Operations Data:
Net revenue............................... $12,327 $7,759 $5,296 $3,475 $2,873
Gross margin.............................. $ 2,722 $1,666 $1,067 $ 738 $ 433
Operating income (loss)................... $ 1,316 $ 714 $ 377 $ 249 $ (39)
Income (loss) before extraordinary loss... $ 944 $ 531 $ 272 $ 149 $ (36)
Net income (loss)......................... $ 944 $ 518 $ 272 $ 149 $ (36)
Income (loss) before extraordinary loss
per common share(a)(b):