Dell 2002 Annual Report Download - page 20

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Table of Contents
maintaining its strategy of profitable market share growth with a focus on improving overall profitability, Dell will continue to outperform the industry in any
economic environment.
Results of Operations
The following table summarizes the results of Dell's operations for each of the past three fiscal years. All percentage amounts were calculated using the
underlying data in thousands.
Fiscal Year Ended
January 31, Percentage February 1, Percentage February 2,
2003 Change 2002 Change 2001
(dollars in millions)
Net revenue $ 35,404 14% $ 31,168 (2)% $ 31,888
Gross margin $ 6,349 15% $ 5,507 (15)% $ 6,443
% of net revenue 17.9% 17.7% 20.2%
Operating expenses $ 3,505 8% $ 3,236 (12)% $ 3,675
% of net revenue 9.9% 10.4% 11.5%
Special charges — $ 482 $ 105
Total operating expenses $ 3,505 (6)% $ 3,718 (2)% $ 3,780
% of net revenue 9.9% 11.9% 11.8%
Operating income $ 2,844 59% $ 1,789 (33)% $ 2,663
% of net revenue 8.0% 5.8% 8.4%
Net income $ 2,122 70% $ 1,246 (43)% $ 2,177
% of net revenue 6.0% 4.0% 6.8%
During fiscal 2003, Dell continued to execute its profitable market share growth strategy and achieved record unit shipments, net revenue and operating
income despite a difficult industry and macro-economic environment. Management's relentless focus on cost improvements resulted in improved gross and
operating margins compared to fiscal 2002 even though average revenue per unit declined over the same period as Dell passed on substantially all component
cost declines to its customers. By maintaining its strategy of profitable market share growth, with a focus on improving overall profitability, management
currently expects to continue to capitalize on market opportunities.
Net Revenue
The following table summarizes Dell's net revenue by geographic region for each of the past three fiscal years:
Fiscal Year Ended
January 31, Percentage February 1, Percentage February 2,
2003 Change 2002 Change 2001
(dollars in millions)
Net Revenue:
Americas:
Business $ 19,394 12% $ 17,275 (9)% $ 18,969
U.S. Consumer 5,653 26% 4,485 15% 3,902
Total Americas 25,047 15% 21,760 (5)% 22,871
Europe 6,912 8% 6,429 — 6,399
Asia Pacific-Japan 3,445 16% 2,979 14% 2,618
Consolidated net revenue $ 35,404 14% $ 31,168 (2)% $ 31,888
During fiscal 2003, Dell generated record net revenue and unit shipments even though the global economy remained soft impacting capital spending and
overall industry demand. Dell achieved this growth, among other things, by continuing to focus on geographic expansion, by expanding customer-focused
product and service offerings, and by offering a superior value proposition to its
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