Smarter Utility

 

[July 16, 2004]

Kevin Rollins Becomes Dell's CEO, Is Elected to Board at Company's Annual Meeting; Shareholders Re-elect Nine Directors, Reject Proposal to Expense Stock Options

AUSTIN, Texas --(Business Wire)-- July 16, 2004 -- Michael Dell, who founded the company that bears his name in May 1984, has been Dell's (Nasdaq:DELL) only chief executive officer -- until today.

That title was transferred to Kevin Rollins during the company's annual meeting of shareholders here this morning, completing action unanimously approved by Dell's board of directors in early March. Shareholders also elected Mr. Rollins to the company board.


As they have for more than seven years, Messrs. Rollins and Dell continue to run the company with a distinctive shared-leadership structure -- Mr. Rollins now as president and chief executive officer, Mr. Dell as chairman of the board.

"Today's change is primarily one of title, not of roles or responsibilities, so it won't alter the way Kevin and I run the business," said Mr. Dell. "However, the change is a very important and exciting milestone, our first transition of top leadership."

According to Mr. Dell, "There is no single person who deserves more recognition for our great accomplishments than Kevin. His becoming CEO is as much about recognizing what he's already done as it is about our confidence in his future and Dell's.

"Our leadership approach works because we see our roles as partners, we execute our responsibilities as friends, and we share a dedication to making Dell the best company in the world."

In his remarks to investors, Mr. Rollins said second-quarter earnings are expected to exceed Dell's initial guidance. The company now anticipates earnings per share of 31 cents, two cents 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.

"Our business is uniquely efficient and customer-focused, and its fundamental advantages are as significant and sustainable as at any time in our history," said Mr. Rollins. "That's true in network servers, in storage, in professional services, and in printing and imaging.

"Customers and, in turn, investors continue to be the beneficiaries of that reality."

In formal business at today's meeting, shareholders:

-- Re-elected nine company directors -- Donald J. Carty, Mr. Dell, William H. Gray III, Judy C. Lewent, Thomas W. Luce III, Klaus S. Luft, Alex J. Mandl, Michael A. Miles and Samuel A. Nunn Jr. -- and elected Mr. Rollins to replace Morton L. Topfer, who chose to retire from the board.

Mr. Dell recognized Mr. Topfer, the company's former vice chairman, for "10 years of extraordinary contributions to Dell and his enduring legacy of excellence and friendship."

-- Rejected a nonbinding shareholder proposal that Dell establish a policy of expensing stock options in the company's income statements.

and

-- Ratified PricewaterhouseCoopers L.L.P. as Dell's independent auditors for fiscal 2005.

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 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.

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.

[ Back To Homepage ]