Dell Reports Preliminary Revenue of $14.4 Billion; Preliminary Earnings per Share of $0.30

Dell Reports Preliminary Revenue of $14.4 Billion; Preliminary Earnings per Share of $0.30

Dell reported preliminary results for the third quarter of fiscal year 2007, with revenue of $14.4 billion, operating income of $824 million, and earnings per share of $0.30. Dell ended the quarter with $11.6 billion in cash and investments. Commercial paper outstanding at the end of the quarter totaled $236 million. The company suspended its share repurchase program in mid-September and, therefore, only spent $335 million to repurchase 15 million shares.

Investigation Update; Preliminary Results Subject to Change: As previously announced, the U.S. Securities and Exchange Commission (SEC) and the Company’s Audit Committee are conducting investigations into certain accounting and financial reporting matters, including the possibility of misstatements in prior period financial reports, and the company previously received a related subpoena from the United States Attorney for the Southern District of New York. Due to questions raised in connection with these ongoing investigations, the Company has not filed the Form 10-Q for its fiscal second quarter ended August 4, 2006 and does not expect to be able to timely file its Form 10-Q for the fiscal third quarter ended November 3, 2006.

As a result, all financial results described in this press release, as well as the previously announced financial results for the second quarter, should be considered preliminary, and are subject to change to reflect any necessary corrections or adjustments, or changes in accounting estimates, that are identified prior to the time the company is in a position to complete these filings. In addition, the preliminary results for the second and third quarters could be affected by any restatements of prior period financial statements that are required as a result of any conclusions reached by the investigations. No determination has been made as to whether restatements of prior period financial statements will be required.

The company is not currently able to predict the extent or significance of any such changes, and those changes could materially affect the preliminary results reported herein, as well as the previously announced results for the second quarter. Additional information about the investigations, as well as information about related private litigation, can be found in the Current Report on Form 8-K filed with the SEC concurrent with the issuance of this press release.

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