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Dell Raises Guidance for Second-Quarter EPS to 31 Cents

Operating Highlights Include Strong Enterprise Sales, Global Growth, SMB Demand

AUSTIN, Texas--(BUSINESS WIRE)--July 16, 2004--Dell (NASDAQ: DELL) is raising profit guidance for the company's fiscal second quarter. Attendees to Dell's annual meeting of shareholders here this morning will learn that second-quarter per-share earnings are now expected to be 31 cents--up 29 percent from one year ago and two cents per share better than the company's initial guidance. Higher operating profitability is expected to produce EPS of 30 cents; the balance of the guidance increase is attributable to a further decline in the company's global tax rate.
Dell continues to anticipate second-quarter revenue of $11.7 billion. The company's second-quarter tax rate is now expected to be 24 percent, which brings the average rate for the first half of the year to 26 percent - consistent with current expectations for all of fiscal 2005, given continued strong growth in business outside the United States.

Kevin Rollins, who will become Dell's chief executive officer during today's meeting, said the company's industry-leading, profitable growth remains broadly based. Highlights in the current quarter include robust sales of enterprise systems and services, gains in markets outside the United States, and shipments to U.S. small- and medium-business customers.

Preliminary estimates by industry analysts indicate Dell's overall global market share in the second quarter increased to more than 18 percent, up a full point from the same period a year ago. In Europe, the Middle East and Africa, Dell narrowed the quarterly gap between itself and the region's largest player to just 5.4 share points, down from 8 points a year ago.

Dell's second quarter ends July 30. Full results for the period will be announced Aug. 12.

Today's shareholders meeting begins at 8 a.m. (CDT), and can be viewed "live" online at www.dell.com/investor/.

About Dell

Dell Inc. (NASDAQ: DELL) is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Company revenue for the past four quarters totaled $43.5 billion. Dell, through its direct business model, designs, manufactures and customizes products and services to customer requirements, and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained at www.dell.com.

Dell is a trademark of Dell Inc.

Market-share data based on IDC WW Quarterly PC Tracker, July 15, 2004.

Dell disclaims any proprietary interest in the marks and names of others.

Special note: Statements in this press release that relate to future results and events (including statements about fiscal second-quarter financial and operating performance) are based on the company's current expectations. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including general economic and business conditions; the level of demand for the company's products and services; the level and intensity of competition in the technology industry and the pricing pressures that have resulted; the company's ability to timely and effectively manage periodic product transitions, as well as component availability and cost; the company's ability to develop new products based on new or evolving technology and the market's acceptance of those products; the company's ability to manage its inventory levels to minimize excess inventory, declining inventory values and obsolescence; the product, customer and geographic sales mix of any particular period; the company's ability to effectively manage its operating costs; and the effect of armed hostilities, terrorism or public health issues on the economy generally, on the level of demand for the company's products and services and on the company's ability to manage its supply and delivery logistics in such an environment. Additional discussion of these and other factors affecting the company's business and prospects is contained in the company's periodic filings with the Securities and Exchange Commission.

Contacts


Dell, Inc., Round Rock
Media Contacts:
Mike Maher, 512-723-2575
mike_maher@dell.com
or
T.R. Reid, 512-728-7977
tr_reid@dell.com
or
Investor Contacts:
Lynn A. Tyson, 512-723-1130
lynn_tyson@dell.com
or
Robert Williams, 512-728-7570
robert_williams@dell.com

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