This is a partial transcript from Your World with Neil Cavuto, November 13, 2003, that was edited for clarity.
Watch Your World w/Cavuto weekdays at 4 p.m. and 1 a.m. ET.
NEIL CAVUTO, HOST: After the bell, computer maker Dell (search) thanking stronger PC sales for boosting of the bottom line. Dell posting profits of 26 cents a share in its third quarter. And that was right in line with estimates.
Dell stock has been a strong performer. It’s up 31 percent since the start of the year. The company’s president, chief operating officer, Kevin Rollins, now joins me from Round Rock, Texas.
Kevin, welcome. Congratulations.
KEVIN ROLLINS, DELL INC. PRES. & COO (DELL): Neil, thank you very much. Good to be with you.
CAVUTO: Boy, this is almost right on line with estimates that you yourself revised higher the last quarter. I’m wondering now where you see things going right now in the quarter we’re in.
ROLLINS: Well, I think we have given some guidance today as well for next quarter that would suggest again very good growth in our top-line, good growth in EPS, another 22 percent annual growth. So we believe that the dell machine’s working and continuing to roll.
CAVUTO: All right. Now, everyone wants to know what consumers are doing, a large part in the business enterprise arena. That’s a big chunk of your business. But everyone is watching folks at home and whether they’re inclined to be buying computers this Christmas, this holiday season. Any early gauge?
ROLLINS: Well, we certainly had a good Q3. Our consumer business was up 28 percent year on year, which was kind of one of the pacing segments of our business. And it looks like this is a pretty good consumer turnaround for the overall computer industry, this last second half.
CAVUTO: Intel and IBM has said much the same thing. Of course, Intel has been wrong on a couple of its prediction over the last year, so has IBM. Who is to say any of you guys are right now?
ROLLINS: Well, for consumer, IBM really doesn’t play much in that space. But I think for the corporate turnaround, again, it’s a little more muted. We have seen good signs in small business in consumer, so there’s more transactional arenas. But it’s still a little bit muted in the large corporate market in terms of growth.
CAVUTO: Let me ask you a little bit about price wars that could develop here. Now, obviously, you have one of the leanest, meanest operations for that, and your direct order model is helping you there. But with Gateway ultimately slashing the price of almost everything it sells from plasma screens to laptops, do you feel added pressure this holiday season?
ROLLINS: Well, really not. I mean, Gateway, to a great extent, has shrunk enough throughout the marketplace that they’re not quite as relevant in the PC space anymore. But the market has always been competitive, and we like a good challenge. But most importantly, it means that customers are going to be able to get great value on both computers, as well as consumer electronic products this holiday season.
CAVUTO: All right. Kevin Rollins, thank you. Again, very good seeing you. Congratulations.
ROLLINS: Good to see you, Neil. Thanks.
CAVUTO: Kevin Rollins, the president and COO of Dell in Texas.
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