-->>"Gross margin was 18.7 percent of revenue as strong improvement in cost of goods sold, disciplined pricing, a sequential increase in sales from enterprise products, and a $69 million buyout of a revenue-sharing agreement by a vendor offset previously highlighted pressure from component costs, competitive pricing and revenue mix in client systems."
Operating cash flow was $1.1billion, and end-of-quarter cash and investments totalled $12.7billion, or 42% of today's market value.
Despite the good results, Dell is not yet ready to call an inflection point, and they see the much-anticipated PC refresh cycle as a 2010 story, disapointing some who were hoping for a back-half of 2009 boost.
As usual, my biggest problem with this company is that they continually cannot make cash from operations in excess of net income - they say it's coming but it's still a ways off.
Back then the FCFY was about 17%, what I considered to be WAY above their cost of capital of 5-6%, as they demonstrated by tapping the debt market.
At this afternoon's price, I get an FCFY of about 11%, and that's before the street gets comfortable with possibly higher Free Cash Flow estimates for this year and next. Still way above their cost of capital so I think the shares will go higher from here: