Dell Computer Corp said improvements in gross margins will depend upon the industry’s pricing environment and the company’s ability to manage inventory: inventories during the fourth quarter represented five weeks of sales for the second consecutive quarter; fourth quarter profits fell and there was a loss for the year (see results page 5); Dell has improved liquidity during the second half of the year generating $180m cash from operations and completed financings totalling more than $200m; most revenue growth was from sales of 80486-based desktop and workstation systems, increasing 40% to $596m in the fourth quarter; gross profit margins dropped to 18.6% of sales in the quarter from 20.5% a year ago, but gross profit margins improved from the third quarter; Dell sees growth from its new notebook and server products.
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