BE NEH."
`
`W.de“.c0!“
`
`Dell Computer Corporation
`Dell Computer Corporation
`Fiscal 1999 in Review
`
`Fiscal 1999 in Review
`
`Petitioner Apple Inc. - Exhibit 1053, p. 1
`
`Petitioner Apple Inc. - Exhibit 1053, p. 1
`
`

`

`WWWJJELLBDM
`
`Dell Computer Corporation is the worlds leading
`direct computer systems company and the
`fastest-growing among all major computer
`companies. Dell sells customized desktop
`and notebook computers, workstations, network -
`servers, storage products and rela ted software
`and peripherals—increasingly via the lnternet,
`at wwwdeilcom and wwwgigahuyscom—
`to businesses of all sizes, government agencies,
`educational institutions and individuals.
`
`guides everything it does.- Be Direct.
`
`The company also provides an extensive
`range of value—added services, such as
`leasing, system installation and management,
`24—hour technical support, and planning
`and execution for technology transitions. Dell
`operates under a simple philosophy that
`
`m .
`FISDIL YEAR ENDED
`‘—
`(DDLLARS IN MILUDNS. EICEPI PER—SHARE DATA)
`MN. 23,1595
`FEB. 1.1933
`PWE - . '
`U
`
`Net revenue
`Gross margin
`Operating income
`Net income
`
`Income per common share:
`Basic
`Diluted
`
`Weighted average shares:
`Basic
`Diluted
`
`Working capital
`Total assets
`Long-term debt
`Total stockholders' equity
`
`Closing stock price
`Return on invested capital
`
`8
`$
`$
`6
`
`6
`$
`
`$
`8
`33
`3;
`
`$
`
`18,243
`4,106
`2,046
`1,460
`
`0.58
`0.53
`
`2,531
`2,772
`
`2,644
`6,877
`512
`2,321
`
`50.00
`195%
`
`$
`$
`$
`$
`
`$
`$
`
`$
`$
`$
`$
`
`$
`
`12,327
`2,722
`1,316
`944
`
`0.36
`0.32
`
`2,631
`2,952
`
`1,215
`4,268
`17
`1,293
`
`48%
`51%
`56%
`55%
`
`61%
`66%
`
`,
`C
`.
`
`-
`
`I:
`
`r
`
`.‘
`
`12.43
`186%
`
`302%
`
`-
`
`a.
`a.
`
`_
`
`_
`
`a
`
`.,
`
`‘
`
`n;-
`
`Share and per-share information has been restated to reflect
`2-for—1 splits of the common stock in September 1998 and March 1999.
`
`Petitioner Apple Inc. - Exhibit 1053, p. 2
`
`Petitioner Apple Inc. - Exhibit 1053, p. 2
`
`

`

`TO OUR CUSTOMERS,
`STOCKHOLDERS, SUPPLIERS AND EMPLOYEES
`
`For Dell
`
`Computer Corporation,
`fiscal 1999 was another
`extraordinary year. We continued to extend the
`capabilities of our customer-focused direct business
`model, strengthened our reputation for product
`and service leadership, and undertook the company’s
`first global brand-advertising campaign.
`Our use of the Internet to make it easier for customers
`and suppliers to do
`business with Dell,
`and to help reduce
`costs for us all, remains
`among the most ad-
`vanced in any industry.
`
`MORTON L. TOPFER
`Vice Chairman
`
`MICHAEL S. DELL
`Chairman of the Board
`Chief Executive Officer
`
`W W W . D E L L . C O M
`
`KEVIN B. ROLLINS
`Vice Chairman
`
`1
`
`Petitioner Apple Inc. - Exhibit 1053, p. 3
`
`

`

`8.6%
`
`5.9%
`
`4%
`
`3%
`
`3%
`
`FY95 96 97 98 99
`
`MARKET SHARE
`(PER INDUSTRY ANALYSTS)
`
`We launched new initiatives in
`China and Latin America, markets
`that offer exceptional opportunity for
`us. We grew at more than five times
`the global industry rate.
`And a Fortune magazine
`sur vey listed Dell No. 4
`a m o n g A m e r i c a’s “m o s t
`admired” companies.
`Our operating performance
`again spoke for itself, with
`industry-leading results in the
`three priority areas: growth,
`profitability and liquidity. Net
`revenue for the fiscal year rose
`48 percent to $18.2 billion.
`Net income increased 55
`percent to $1.5 billion, and
`earnings per share were $0.53,
`up 66 percent. During the
`year, we generated $2.4 billion
`in cash from operations. The
`company’s return on invested
`capital, a key indicator of
`v a l u e c r ea t i o n , wa s 195
`percent, easily the best in our
`industry. The value of Dell common
`stock was up more than 300 percent
`during the fiscal year.
`Not surprisingly, our major competi-
`tors again tried to replicate portions of
`Dell’s business model, while we
`continued to set new standards across
`a range of industry measures. A good
`
`$18.2
`
`example: supply-chain management. At
`year end, we had only six days of supply
`in inventory, a fraction of what is held
`by indirect companies and their resellers.
`High inventory levels carry profound
`implications for customers in
`terms of cost, quality and rele-
`vance of technology. By using
`the Internet, in part, to bring
`suppliers, Dell and our cust-
`omers closer together, we are
`achieving increasingly higher
`levels of efficiency.
`Our business grew signifi-
`cantly around the world last
`year. Net revenue increased
`46 percent in the Americas,
`58 percent in Europe and
`37 percent in Asia-Pacific/
`Japan—the
`last a region
`where
`industry shipments
`actually were flat versus the
`previous year. We likewise
`saw rapid expansion in all
`customer business units, led
`by our Americas home and
`small-business group, which achieved
`a 54-percent gain.
`While the 24,400 people of Dell—
`8,200 of whom joined us during the
`past year—are rightly proud of the
`company’s tremendous accomplish-
`ments in fiscal 1999, our future
`abounds with potential. Retaining and
`
` $12.3
`
` $7.8
`
` $5.3
`
`$3.5
`
`FY95 96
`
` 97 98 99
`
`NET REVENUE
`(IN BILLIONS)
`
`2
`
`WWW.DELL.COM
`
`Petitioner Apple Inc. - Exhibit 1053, p. 4
`
`

`

`While we’re rightly proud of
`the company’s tremendous accomplishments,
`our future abounds with potential.
`
`W W W . D E L L . C O M
`
`$0.53
`
`$0.32
`
`$0.17
`
`$0.08
`$0.05
`
`recruiting increasing numbers of highly
`skilled men and women with a diverse
`range of backgrounds remain strategic
`requirements for us. We believe that,
`with focused execution of our direct
`model, we can continue to set
`the standards for leadership
`in our industry.
`is based on
`Our belief
`a range of complementary
`“
`engines” that drive the
`company’s robust growth.
`During the past year,
`revenue from our expanding
`range of enterprise systems—
`Dell Precision workstations,
`PowerEdge servers and Power-
`Vault storage products—and
`notebook computers increased
`by 113 and 75 percent, respec-
`tively.
`In those and other
`product areas, Dell
`is
`recognized by analysts and
`customers for its leadership
`in quality and performance.
`As examples, Gartner Group,
`a leading industry-analyst organiza-
`tion, cited our “ability to execute” and
`completeness of vision” in its evaluation
`“
`of top server vendors; we exited last
`year as the No. 1 seller of work-
`stations using Microsoft Corp.’s
`Windows NT operating system; and
`PC Magazine called our Inspiron 7000
`
`”
`notebook the “best portable PC ever.
`Still, enterprise and notebook systems
`account for smaller portions of our
`overall business than the industry
`averages, which means tremendous
`opportunity remains.
`v i a
`T h o u g h
`s a l e s
`w w w. d e l l. c o m r e a c h e d
`$14 million per day by the end
`of the fiscal year and accounted
`for 25 percent of our revenue in
`the fourth quarter, we believe
`the growing range of services
`Dell delivers through the
`Internet is equally compelling.
`We now host more than 15,000
`Premier Pages, unique sites
`within dell.com that are tailored
`to the specific needs of individual
`corporate and institutional
`customers. These pages offer
`services such as approved
`product configurations, global
`pricing, paperless purchase
`orders, real-time order tracking,
`invoicing
`and
`purchasing
`history, among other efficiency tools.
`Our on-line “virtual account execu-
`tive” provides high-level services to
`small businesses. And we furnish all
`customers—from the largest corpo-
`rate client to the individual home-PC
`buyer—with a “virtual help desk
`”
`featuring natural-language search
`
`FY95 96 97 98 99
`
`DILUTED EARNINGS
`PER SHARE
`
`32
`
`31
`
`13
`
`7
`
`6
`
`
`
` FY95 96 97 98 99
`
`DAYS SUPPLY
`IN INVENTORY
`
`3
`
`Petitioner Apple Inc. - Exhibit 1053, p. 5
`
`

`

`This past year, Dell was
`the fastest-growing
`manufacturer and marketer of
`computer systems in the world.
`
`195%
`186%
`
`85%
`
`39%
`
`37%
`
` 97 98 99
`FY95 96
`RETURN ON
`INVESTED CAPITAL
`
`$127.2
`
`Recognition of Dell’s capabilities
`is increasing worldwide, as are
`the company’s growth opportunities.
`We completed or announced plans
`for more than one million square feet
`of additional manufacturing
`1999,
`capacity
`in fiscal
`including new plants
`in
`Austin, Texas, and Limerick,
`Ireland. We opened a manu-
`facturing and customer center
`in China to support our
`direct model in that national
`market, which is already
`among the top 10 in the
`world and, we believe, will be
`the second largest —behind
`only the U.S. — within five
`years. We also announced
`plans for a manufacturing
`and customer center in Brazil
`that will serve the Mercosur
`trading region.
`We remain convinced that
`Dell is expanding significantly
`the fundamental advantages
`of its direct business model, and we
`are giving a powerful new voice to
`that belief. Last year, we introduced
`the company’s first global brand-
`advertising campaign, which illus-
`trates for customers the benefits
`that result from their choosing to
`Be Direct.” The theme of the
`“
`
`capabilities, direct access to more
`than 50,000 pages of technical-support
`data, and an efficient spare-parts
`ordering system.
`Recently, we expanded our Internet
`presence with the launch of
`www.gigabuys.com, an on-line
`source for tens of thousands of
`computer-related products at
`competitive prices.
`I n t h e field , w e a r e
`continuing to strengthen our
`portfolio of services. With its
`service partners, Dell has a
`worldwide team of more than
`20,000 technicians who are
`trained to provide a broad
`variety of services. However, as
`we develop additional partner-
`ships with best-in-class service
`companies, the advantages our
`customers enjoy with Dell as
`the single point of contact and
`accountability will be enhanced.
`Customers recognize our
`product and service leadership.
`Among more than 350 related awards
`last year, Dell again was rated first in
`customer satisfaction in several impor-
`tant industry surveys, and was chosen
`overwhelmingly as “best of breed” in
`PCs in capturing Fortune magazine’s
`first Reader’s Choice Award for
`Personal Service and Reliability.
`
`$32.0
`
`$11.4
`$2.6
`
` $1.7
`FY95 96 97 98 99
`MARKET
`CAPITALIZATION
`(IN BILLIONS)
`
`4
`
`WWW.DELL.COM
`
`Petitioner Apple Inc. - Exhibit 1053, p. 6
`
`

`

`W W W . D E L L . C O M
`
`We realize that, for all of our
`accomplishments, nine of every 10
`computer systems purchased last year
`were sold by someone other than Dell.
`That statistic vividly underscores the
`magnitude of what remains to be
`done, but also the grand opportunity
`we have with the industry’s most
`efficient, most customer-focused
`business model, and our team of
`skilled, dedicated employees.
`We intend to continue to bring
`that opportunity to life by working
`to exceed the expectations of every
`customer, and, in turn, all others who
`have interests in Dell. And we will do
`so the best way we know how.
`Directly.
`
`MICHAEL S. DELL
`Chairman of the Board and
`Chief Executive Officer
`
`MORTON L. TOPFER
`Vice Chairman
`
`KEVIN B. ROLLINS
`Vice Chairman
`
`April 1999
`
`5
`
`campaign serves as the foundation for
`our stepped-up efforts to brand the
`unique way Dell does business.
`We want customers who may buy
`only desktop PCs from Dell today to
`select us for notebook computers and
`servers, too. We want customers who
`today purchase from Dell in Europe, for
`example, to also choose us for their oper-
`ations elsewhere in the world. And we
`want customers who today have multiple
`suppliers of computer systems to pick
`Dell as they consolidate their purchasing
`of these products and related services.
`Of course,
`to accomplish those
`objectives, we must consistently and
`increasingly deliver on the promise of
`the Dell brand. Make no mistake—
`we recognize that the fuel for our
`growth is a superior customer experience.
`This past year, Dell was the
`fastest-growing manufacturer
`and
`marketer of computer systems in the
`world. In terms of market share,
`we ranked No. 3. However, the knowl-
`edge gained from direct relationships
`with customers and our keen focus
`on their satisfaction together serve
`as ample guard against contentment
`on our part. So, too, does our employee
`compensation program, which is tied
`to the company’s measured performance
`and progress in exceeding the require-
`ments of customers.
`
`Petitioner Apple Inc. - Exhibit 1053, p. 7
`
`

`

`Dell Dimension desktop computers
`
`UptiPiex desktop computers
`
`Latitude notebook computers
`
`tnspiron notebook computers
`Deli Precision workstations
`
`PowerEdge network servers
`
`PowerVau/t storage products
`Deli Services
`
`wwwgigabuyscom on—iine software, peripherais
`
`...........
`
`WWWJELL‘EUM
`
`r
`
`Imt
`
`
`
`Petitioner Apple Inc. - Exhibit 1053, p. 8
`
`Petitioner Apple Inc. - Exhibit 1053, p. 8
`
`

`

`
`
`
`t sets Dell apart.
`
`WUB'TIEU'MMM
`
`’I’er CorporaIIon pIoIIeered Ihe dIreeI husIness modeI In Ihe oompuIeI
`dusemyears ago. Today, oompeIIIors are sIIII ohasmg DeII’s IIsIng
`s'IaIIdaIds fenefipi‘enoy and eIfeoII.veness
`WhaIflpes II Ifiean Io ‘Be DIrecI.'7 SImpIy DeII deaIs dIreoIIy wIIh
`customers. from Ihe onIds IargesI eorporahons Io IndIvIdIIaI homePC users
`DeIIIs IheIesIngIe poIIII of eonIaoI and aocounIahIIIIy Ihere are no
`Ifl?fm8dI3IIES ”SpeoIaII'zed saIes and suppoII Ieams undeIsIand uanue
`oufiomer needs WIIh IhaI InsIghI DeII deIII/ers Ihe IaIesI IeIeIIanI
`
`«er 'IomIzed produoIs IIIIIII one ed a IIme. ExoeIIeIII vaIue
`Andexc-
`IIonaI sen/Ice and support.
`.
`7
`Is abouI sIIIIIIng Io pIoI/Ide a superIoI ousIomer expenenoe
`
`b bemg accounIabIe. EIIICIeIII ResponsIve. Engaged. ReIIabIe.
`m TenaIy. Those IIaIIs are demonsIraIed on Ihe IoIIowIng pages.
`
`
`I case sIudIes and some of more Men 350 produoI and
`
`"'ards DeII earned IasI year anne.
`
`.
`.-;I;_.. IreeI. II's a beIIeI way of doI'ng busIness. For ousIomers buyIng
`o'o p er systems and serIoes. And for Bed.
`-
`
`.
`
`Petitioner Apple Inc. - Exhibit 1053, p. 9(1)
`
`Petitioner Apple Inc. - Exhibit 1053, p. 9
`
`

`

`Being Direct means Dell is
`
`accountable
`
`the single point of contact
`for customers worldwide.
`
`WWW.DELL.COM
`
`8
`
`R E A D E R S ’ C H O I C E : P E R S O N A L S E R V I C E A N D R E L I A B I L I T Y , FORTUNE TECHNOLOGY
`
`Petitioner Apple Inc. - Exhibit 1053, p. 10
`
`

`

`W W W . D E L L . C O M
`
`SONY CORPORATION
`Sony Corporation, the Tokyo-based manufac-
`turer of audio, video, communications and
`information technology products and global
`entertainment company, four years ago
`changed the corporate computing standard
`at its operations in Japan to Microsoft
`Windows-based PCs. With the platform
`change came a need for a new computer
`system supplier, one that could deliver large
`numbers of high-performance desktop
`systems quickly and efficiently.
`As one of the solutions, Sony chose Dell,
`which has a dedicated team of sales and
`technology professionals to help Sony
`
`select the best products for its information
`technology needs. At its manufacturing
`facility in Penang, Malaysia, Dell assembles,
`custom-configures and tests OptiPlex desktop
`systems, then ships them to Sony locations
`across Japan.
`By choosing Dell desktops, Sony saves
`significant amounts of time and money, in
`part because of the efficiency of purchasing
`directly. Sony buys its systems from Dell
`on-line, through a unique Premier Page at
`www.dell.com. Today, Sony is purchasing
`high-quality, custom-built Dell computer
`systems for 30 subsidiaries around the world.
`
`B U Y E R’S G U I D E n
`
`M V P :
`
`D E S K T O P
`
`P C
`
`C A T E G O R Y , P C / C O M P U T I N G J A P A N
`
`9
`
`Petitioner Apple Inc. - Exhibit 1053, p. 11
`
`

`

`Being Direct means Dell is
`
`efficient
`
`delivering cost-effective,
`industry-leading products and services.
`
`WWW.DELL.COM
`
`10
`
`B E S T B U Y: P O W E R , B U D G E T A N D H O M E D E S K T O P S Y S T E M S , PC WORLD n W O R L D - C L A S S R E L I A B I L I T Y,
`
`Petitioner Apple Inc. - Exhibit 1053, p. 12
`
`

`

`W W W . D E L L . C O M
`
`New York Public Library
`Long distinguished as one of the world’s
`Dell delivered one order in time to meet tight
`great libraries, the New York Public Library is
`construction deadlines for renovation of the
`expanding the use of information technology
`landmark Rose Main Reading Room of the
`to provide global access to its renowned
`Humanities and Social Sciences Library. Dell
`collections. To reach that goal, the library
`also saved the library $200 per system by
`sought a strategic business partner that would
`factory-installing the library’s cataloging
`deliver cost-effective computers on tight
`software and other customized programs.
`schedules, quickly solve problems and
`Dell is a strategic business partner on the
`collaborate on new projects.
`library’s information-technology team, and the two
`Over two years the library will purchase
`have worked together on a variety of projects. For
`nearly 1,000 Dell OptiPlex desktop computers
`example, last year Dell consulted with the library,
`for an upgraded network spanning four
`along with other customers, on possible new
`research libraries and 85 branches.
`designs for future models of desktop computers.
`
`Q U A L I T Y, S U P P O R T: D I M E N S I O N D E S K T O P P C S A N D P O W E R E D G E S E R V E R S, PC WORLD HONG KONG
`
`11
`
`Petitioner Apple Inc. - Exhibit 1053, p. 13
`
`

`

`Being Direct means Dell is
`
`responsive
`
`providing services ranked among the industry’s best.
`
`WWW.DELL.COM
`
`America Online Inc., the world leader in
`branded interactive Internet services and
`original content, wanted to reduce the cost
`and improve the efficiency of purchasing
`and supporting notebook computers deployed
`to its global employee base.
`Dell gave AOL access to notebook
`computer systems that were not yet publicly
`available for testing in AOL’s computing
`environment. AOL then selected configura-
`tions of Dell Latitude notebooks—systems
`known for long product life cycles—and
`in the process reduced support requirements
`and eliminated the need for frequent product
`upgrades. Dell now supplies the majority of
`
`AOL’s notebook computers, into which Dell
`factory-installs AOL’s standard and proprietary
`software through the DellPlus program. AOL
`saves time and money by making Dell its
`single point of contact for ordering, delivery,
`service and support of these products.
`Dell also keeps AOL updated on coming
`product changes through Dell’s ImageWatch
`program, helping the Internet company plan
`for its future technology needs. In just the
`first year of the relationship, America Online’s
`implementation of a computing standard based
`on Dell Latitude notebooks has saved the
`company significantly in support and
`procurement costs.
`
`12
`
`R E A D E R S’ C H O I C E : S E R V I C E A N D R E L I A B I L I T Y, D E S K T O P S A N D N O T E B O O K S , PC MAGAZINE
`
`Petitioner Apple Inc. - Exhibit 1053, p. 14
`
`

`

`
`
`W W W . D E L L . C O M
`
`Ur
`
`n
`l—
`l—
`
`OOE
`
`n
`
`N O . 1 : P C C U S T O M E R S A T I S F A C T I O N , W E B - B A S E D S U P P O R T , C O M P U T E R W O R L D 13
`
`Petitioner Apple Inc. - Exhibit 1053, p. 15
`
`Petitioner Apple Inc. - Exhibit 1053, p. 15
`
`

`

`WWW.DELL.COM W
`
`WW.DELL.COM
`
`14
`
`|T LEADEHS' CHOICE: SERVERS. DESKTOPS AND NOTEBOOKS. COMPUTERWORLD
`I T L E A D E R S ’ C H O I C E:
`S E R V E R S , D E S K T O P S A N D
`N O T E B O O K S , C O M P U T E R W O R L D
`
`Petitioner Apple Inc. - Exhibit 1053, p. 16
`
`

`

`Being Direct means Dell is
`
`engaged
`
`dealing one-to-one with customers of all sizes.
`
`W W W . D E L L . C O M
`
`Microsoft Corporation, the worldwide leader
`in software for personal computers, needed
`a faster and more cost-effective way of
`purchasing the computers its employees use
`to design products. Dell, with its industry-
`leading on-line capabilities, gave Microsoft
`the ability to buy desktop and notebook
`computers, network servers and workstations
`through www.dell.com and a Premier Page
`Web site customized for Microsoft. Dell also
`loads and tests software and installs the
`customer’s asset tags in the factory through
`
`the DellPlus program, putting systems into
`use dramatically faster and helping Microsoft
`track its computer purchases across its
`sprawling Redmond, Wash., campus.
`Microsoft technology buyers who purchase
`directly from Dell typically receive their
`preconfigured systems in about four days.
`The efficiency of Dell’s on-line paperless
`purchase orders and electronic invoicing
`capabilities combined to save Microsoft
`an estimated $1 million in procurement
`costs in the first year alone.
`
`n
`
`H I G H E S T O V E R A L L C U S T O M E R S A T I S F A C T I O N :
`
`P C S E R V E R S , D A T A P R O 1 5
`
`Petitioner Apple Inc. - Exhibit 1053, p. 17
`
`

`

` WWW.DELL.COM
`
`WWW.DELL.COM
`
`- j- Pétitioner Apple Inc. - Exhibit 1053, p. 18
`RELIABILITY AND SERVICE: WORK PCS, HOME PCS AND NOTEBOOKS, PC WORLD
`R E L I A B I L I T Y A N D S E R V I C E : W O R K P C S , H O M E P C S
`N O T E B O O K S , P C W O R L D
`A N D
`
`I;
`i'
`.*'Z
`
`1 6
`
`Petitioner Apple Inc. - Exhibit 1053, p. 18
`
`

`

`Being Direct means Dell is
`
`reliable
`
`building high-performing computers one at a time.
`
`W W W . D E L L . C O M
`
`At 1:22 a.m.on Feb. 5, Darren Denenberg
`and Megan Roback found themselves trapped
`in their Baltimore, Md., apartment by a fire
`that started two doors down. The eight-alarm
`blaze left the dwelling uninhabitable and
`most of their belongings severely damaged
`by smoke and water. Most—but not all.
`The couple’s three Dell Dimension desktop
`computers were still running when Darren
`and Megan returned to the apartment the
`following day. Darren, a Ph.D. student at the
`University ofMaryland, uses the computers
`to create and store his dissertation on
`
`human-computer interaction, and to maintain
`student records for the courses he teaches.
`The systems also encounter heavy-duty use
`by the couple to play games, design Web sites
`and access the Internet.
`According to Darren, the Dell systems
`survived “almost as if nothing had happened.”
`The couple and the computers have moved to
`a new home, where the research and
`computer projects were resumed almost
`without interruption. Darren for years has
`recommended Dell computers to friends and
`family members—who now know why.
`
`n M VP:
`
` H I G H - P E R F O R M A N C E P C
`
`A ND
`
`STATE -OF -T HE -A R T PC,
`
`
`
`P C / C O M P U T I N G 17
`
`Petitioner Apple Inc. - Exhibit 1053, p. 19
`
`

`

`Being Direct means Dell is
`
`evolutionary
`
`a global leader in on-line sales,
`services and support.
`
`WWW.DELL.COM
`
`As part of a companywide effort to become more
`cost effective, Mobil Corporation, a leading
`global oil, natural gas and petrochemical
`company, in 1998 established a goal of reducing
`the cost of procuring and supporting its computer
`systems by 25 percent over three years.
`Dell—which is Mobil’s single source world-
`wide for desktop and notebook computers
`and servers—helped the customer define
`standard system configurations and extended
`uniform global pricing for the specified
`systems. Dell established on-line ordering
`for Mobil via www.dell.com. In its factory,
`Dell installs software for Mobil as systems
`
`are being built, and provides tools that help
`Mobil track its system purchases worldwide.
`Orders placed electronically are routed to the
`appropriate Dell regional manufacturing facilities
`for system configuration, testing and shipment.
`Notebook computers from Limerick, Ireland,
`for example, are built with the same processes
`and to the same standards as those assembled
`for Mobil in Austin, Texas.
`Dell’s global account management helps
`Mobil, which has subsidiary operations in 140
`countries, simplify the procurement process,
`accelerate the receipt of new computer systems
`and significantly reduce associated costs.
`
`18
`
`H I G H E S T C U S T O M E R S A T I S F A C T I O N : S E R V E R S, D E S K T O P S A N D N O T E B O O K S, TECHNOLOGY
`
`Petitioner Apple Inc. - Exhibit 1053, p. 20
`
`

`

`OOE f
`
`EEEUr
`
`W W W . D E L L . C O M
`
`n
`'—
`I.
`
`l
`
`E .
`
`Pet?".11 AppleInc. -Exhibit 1053,p. 21
`
`B U S I N E S S R E S E A R C H n
`BUSINESS RESEARCH
`
`Y E A R, F I N A N C I A L T I M E S
`T H E
`S I T E O F
`B U S I N E S S W E B
`BUSINESS WEB SITE OF THE YEAR, FINANCIAL TIMES .
`19
`
`Petitioner Apple Inc. - Exhibit 1053, p. 21
`
`

`

`Dell ComputerCo rporation
`five-year statistical review
`
`(DOLLARS IN MILLIONS,
`EXCEPT PER-SHARE, PER-UNIT DATA)
`
`JAN. 29, 1999
`
`FEB. 1, 1998
`
`FISCAL YEAR ENDED
`FEB. 2, 1997
`
`JAN. 28, 1996
`
`JAN. 29, 1995
`
`$18,243
`$
`4,106
`$
`1,460
`
`$12,327
`$2,722
`$
`944
`
`$7,759
`$1,666
`$
`
`$5,296
`$1,067
`$
`
`531
`
`$3,475
`$
`
`272
`
`738
`$
`
`149
`
`$
`$
`
`0.58
`0.53
`11.2%
`8.0%
`
`$
`$
`
`0.36
`0.32
`10.7%
`7.7%
`
`$
`$
`
`0.19
`0.17
`9.2%
`6.7%
`
`$
`$
`
`$0.09
`$0.08
`7.1%
`5.1%
`
`0.06
`0.05
`7.1%
`4.3%
`
`$
`$
`
`2,046
`1,460
`30.0%
`
`$1,316
`$
`944
`31.0%
`
`$
`
`$
`
`714
`518
`29.0%
`
`$
`
`$
`
`377
`272
`29.0%
`
`$
`
`$
`
`249
`149
`30.0%
`
`68%
`26%
`6%
`
`64%
`13%
`23%
`7%
`
`69%
`24%
`7%
`
`71%
`9%
`20%
`9%
`
`68%
`26%
`6%
`
`78%
`4%
`18%
`10%
`
`66%
`28%
`6%
`
`81%
`3%
`16%
`11%
`
`69%
`27%
`4%
`
`87%
`5%
`8%
`12%
`
`OPERATING RESULTS
`Net revenue
`Gross margin
`Income before extraordinary loss
`Income before extraordinary loss
`per commonshare
`Basic
`Diluted
`Operating income
`Net income
`
`PERCENT OF NET REVENUE
`Operating income
`Net income
`Income tax rate
`Net revenue, by region
`Americas
`Europe
`Asia-Pacific and Japan
`System net revenue, by product line
`Desktops
`Enterprise
`Portables
`Non-system net revenue,
`percent of total system net revenue
`
`WWW.DELL.COM
`
`Share and per-share information has been restated to reflect 2-for-1 splits of the common stock in September 1998and March 1999.
`
`20
`
`Petitioner Apple Inc. - Exhibit 1053, p. 22
`
`

`

`W W W . D E L L . C O M
`
`JAN. 29, 1999
`
`FEB. 1, 1998
`
`FISCAL YEAR ENDED
`FEB. 2, 1997
`
`JAN. 28, 1996
`
`JAN. 29, 1995
`
`$
`$
`$
`$
`$
`$
`$
`$
`
`6,339
`523
`2,644
`6,877
`3,695
`512
`2,321
`6,877
`
`$ 3,912
`$
`342
`$ 1,215
`$ 4,268
`$ 2,697
`$
`17
`$ 1,293
`$ 4,268
`
`$ 2,747
`$
`235
`$ 1,089
`$ 2,993
`$ 1,658
`$
`18
`$
`806
`$ 2,993
`
`$ 1,957
`$
`179
`$ 1,018
`$ 2,148
`$
`939
`$
`113
`$
`973
`$ 2,148
`
`$ 1,470
`$
`117
`$
`718
`$ 1,594
`$
`752
`$
`113
`$
`652
`$ 1,594
`
`1.72
`1.43
`6
`36
`54
`195%
`
`1.45
`1.23
`7
`36
`51
`186%
`
`1.66
`1.36
`13
`37
`54
`85%
`
`2.08
`1.46
`31
`42
`33
`39%
`
`1.96
`1.42
`32
`47
`44
`37%
`
`FINANCIAL POSITION
`Total current assets
`Property, plant and equipment, net
`Working capital
`Total assets
`Total current liabilities
`Long-term debt
`Stockholders’ equity
`Total liabilities and stockholders’ equity
`
`KEY RATIOS
`Current ratio
`Quick ratio
`Days of supply in inventory
`Days of sales in accounts receivable
`Days in accounts payable
`Return on invested capital
`
`OTHER DATA
`Employees (year-end, approximate)
`Average total revenue per unit (approximate)
`Shares issued and outstanding (year-end)
`Weighted average shares outstanding
`Basic
`Diluted
`Common shares outstanding (year-end)
`Closing stock price (NASDAQ: DELL)
`Market capitalization
`
`$
`
`24,400
`2,350
`2,543
`
`2,531
`2,772
`2,543
`50.00
`$
`$ 127,150
`
`10,350
`$ 2,700
`2,768
`
`2,838
`3,126
`2,768
`4.13
`$
`$ 11,430
`
`8,400
`$ 2,850
`2,992
`
`2,863
`3,158
`2,990
`0.86
`$
`$ 2,570
`
`6,400
`$ 2,900
`2,580
`
`2,473
`3,000
`2,540
`0.65
`$
`$ 1,650
`
`16,200
`$ 2,600
`2,574
`
`2,631
`2,952
`2,574
`$ 12.43
`$ 31,995
`
`21
`
`Petitioner Apple Inc. - Exhibit 1053, p. 23
`
`

`

`E X E C U T I V E O F F I C E R S
`MICHAEL S. DELL
`Chairman of the Board and
`Chief Executive Officer
`
`MORTON L. TOPFER
`Vice Chairman
`
`KEVIN B. ROLLINS
`Vice Chairman
`
`PAUL D. BELL
`Senior Vice President,
`Americas Home and
`Small Business Group
`
`G. CARL EVERETT JR.
`Senior Vice President,
`Personal Systems Group
`
`JEROME N. GREGOIRE
`Senior Vice President and
`Chief Information Officer
`
`MICHAEL D. LAMBERT
`Senior Vice President,
`Enterprise Systems Group
`
`JOHN J. LEGERE
`Vice President and President,
`Asia-Pacific
`
`JOSEPH A. MARENGI
`Senior Vice President,
`Americas Relationship Group
`
`D. KEITH MAXWELL
`Senior Vice President,
`Worldwide Operations Group
`
`JAN GESMAR-LARSEN
`Senior Vice President and
`President,
`Europe, Middle East and Africa
`
`THOMAS J. MEREDITH
`Senior Vice President and
`Chief Financial Officer
`
`THOMAS B. GREEN
`Senior Vice President,
`Law and Administration,
`and Secretary
`
`ROSENDO G. PARRA
`Senior Vice President,
`Americas Public and
`International Group
`
`CHARLES H. SAUNDERS
`Vice President and President,
`Japan
`
`JAMES M. SCHNEIDER
`Senior Vice President, Finance
`
`Dell Computer Corporation
`senior management
`
`THOMAS W. LUCE III
`Of Counsel
`Hughes & Luce L.L.P.
`Compensation
`
`KLAUS S. LUFT
`Owner and President,
`MATCH - Market Access for
`Technology Services GmbH,
`and Vice Chairman/
`International Advisor,
`Goldman Sachs Europe Ltd.
`Compensation
`
`CLAUDINE B. MALONE
`President,
`Financial & Management
`Consulting Inc.
`Finance
`
`ALEX J. MANDL
`Chairman of the Board and
`Chief Executive Officer,
`Teligent Inc.
`Audit, Nominating
`
`MICHAEL A. MILES
`Former
`Chairman of the Board and
`Chief Executive Officer,
`Philip Morris Companies Inc.
`Finance
`
`MARY ALICE TAYLOR
`Corporate Executive
`Vice President,
`Global Operations and
`Technology,
`Citigroup Inc.
`Finance
`
`22
`
`B O A R D O F D I R E C T O R S
`MICHAEL S. DELL
`Chairman of the Board and
`Chief Executive Officer,
`Dell Computer Corporation
`
`DONALD J. CARTY
`Chairman of the Board,
`President and
`Chief Executive Officer,
`AMR Corporation and
`American Airlines Inc.
`Committee: Compensation
`
`PAUL O. HIRSCHBIEL JR.
`President,
`Eden Capital,
`and Former
`Managing Director,
`Cornerstone Equity
`Investors L.L.C.
`Audit, Finance
`
`MICHAEL H. JORDAN
`Former
`Chairman of the Board and
`Chief Executive Officer,
`CBS Corporation
`Audit, Nominating
`
`WWW.DELL.COM
`
`Petitioner Apple Inc. - Exhibit 1053, p. 24
`
`

`

`Dell Computer Corporation
`corporate information
`
`W W W . D E L L . C O M
`
`I N V E S T O R D ATA
`Dell Computer Corporation’s common
`stock is traded on The Nasdaq National
`Market under the symbol “DELL.”
`
`The company’s stock was initially
`offered to the public on June 22, 1988,
`at $8.50 per share. Following is a roster
`of subsequent stock splits:
`
`April 1992
`October 1995
`December 1996
`July 1997
`March 1998
`September 1998
`March 1999
`
`3-for-2
`2-for-1
`2-for-1
`2-for-1
`2-for-1
`2-for-1
`2-for-1
`
`(Example: One-hundred shares
`of Dell stock at the IPO was equal
`to 9,600 shares in April 1999.)
`
`One-hundred dollars invested in
`Dell at the IPO price was worth
`about $56,470 at the close of the
`last fiscal year, Jan. 29, 1999.
`
`Investor information, including
`Dell’s fiscal 1999 year-in-review
`and annual reports, can be found
`at www.dell.com/investor/.
`For printed copies of the
`annual report on Form 10-K
`(without exhibits), or other
`investor data, contact:
`
`Investor Relations
`Dell Computer Corporation
`One Dell Way
`Round Rock, TX 78682-2222
`512-728-7800
`
`The company’s 1999 annual
`shareholders meeting will be
`held at 9:00 a.m. on Friday,
`July 16, at the Austin Convention
`Center, 500 E. Cesar Chavez St.,
`Austin, Texas.
`
`I N D E P E N D E N T A C C O U N TA N T S
`PricewaterhouseCoopers LLP
`Austin, Texas
`
`C O M P A N Y I N F O R M AT I O N
`Information about Dell’s products,
`operations, financial results and
`history can be obtained online
`via www.dell.com.
`
`R E G I O N A L H E A D Q U A R T E R S
`AMERICAS
`Dell Computer Corporation
`One Dell Way
`Round Rock, TX 78682
`512-338-4400, 800-289-3355
`Fax: 512-728-3653
`
`EUROPE, MIDDLE EAST AND AFRICA
`Dell Computer Europe
`Dell Plaza
`Western Road
`Bracknell, Berkshire
`United Kingdom RG12 1DX
`44-1344-748000
`Fax: 44-1344-748008
`
`ASIA-PACIFIC
`Dell Computer Asia Ltd.
`1001 Stanhope House
`734-738 King’s Road
`Quarry Bay, Hong Kong
`852-2508-0500
`Fax: 852-2887-2040
`
`JAPAN
`Dell Computer K.K.
`Solid Square East Tower 20F
`580 Horikawa-cho, Saiwai-ku
`Kawasaki, Kanagawa 210-0913
`Japan
`81-44-556-4300
`Fax: 81-44-556-3205
`
`23
`
`Petitioner Apple Inc. - Exhibit 1053, p. 25
`
`

`

`Dell Computer Corporation
`corporate information
`
`D E L L A N D T H E E N V I R O N M E N T
`Dell’s positive environmental practices continued
`in fiscal 1999 through innovative product-design
`and clean-manufacturing initiatives. Dell achieved
`a 70-percent recycling and reuse rate at its manufac-
`turing facilities worldwide, and was recognized for
`having the “Best Workplace Recycling Program” by
`the Recycling Coalition of Texas. Company products
`continued to meet the stringent environmental efficiency
`and design standards required for the German “Blue
`Angel” and Swedish “TCO ’95” certification labels.
`The U.S. Environmental Protection Agency “Waste
`Wise” program recognized Dell for its environmentally
`responsible programs, and Keep Austin Beautiful
`gave Dell its “President’s Award.” For a more extensive
`description of Dell’s environmental programs,visit
`www.dell.com/corporate/vision/ via the Internet.
`
`Dell, Dimension, Latitude, OptiPlex and PowerEdge
`are registered trademarks; Inspiron, Dell Precision
`and PowerVault are trademarks; Gigabuys is a regis-
`tered service mark; and Be Direct, Premier Pages,
`and ImageWatch are service marks of Dell Computer
`Corporation. Other trademarks and trade names used
`in this document refer either to the entities claiming the
`marks and names, or to their products. Dell disclaims
`proprietary interest in the marks and names of others.
`
`DE L L A ND T HE CO M M U N I T Y
`Dell and its employees continued to enrich the
`lives of people around the world through corporate
`programs, the Dell Foundation and direct giving.
`As examples, Dell last year supported community
`traditions such as