On March 1, computer maker Dell (NASDAQ:DELL) released fourth-quarter earnings for the period ended Feb. 2.

  • The results are preliminary; the second- and third-quarter 10-Qs have yet to be filed because of the ongoing SEC probe into the company's accounting practices. That's the reason you won't see any balance-sheet or cash-flow info below.
  • An 18% decline in desktop unit sales contributed to the 5% drop in revenue. Top competitors such as Hewlett-Packard (NYSE:HPQ) -- which passed Dell in market share last year -- are licking their lips.
  • Management expressed disappointment with the results, and newly reinstalled CEO Michael Dell promised to "transform the company."
  • Nearly 3,000 investors have rated the stock in Motley Fool CAPS, where it sports a mediocre two stars out of a possible five.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

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Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005


Gross Margin




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*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Related Foolishness:

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