DELL:STRONG 2008 Q1 EARNINGS OF $16 BILLION

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Date: Tuesday June 3, 2008 10:57:07 am
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    http://www.infoworld.com/article/08/05/29/Dell-reports-strong-first-quarter-earnings_1.html
    Dell reports strong first-quarter earnings
    Computer maker beats analyst expectations in net revenue and reported net income for the quarter
    june
    2008  Dell on Thursday reported strong earnings for the first fiscal
    quarter of 2009, with laptop revenue growth offsetting a drop in
    desktop revenue.Dell’s net revenue was $16.08 billion for the quarter,
    growing 9 percent year-over-year and beating expectations of $15.7
    billion based on analysts polled by Thomson Financial.The company
    reported net income of $784 million, a 4 percent year-over-year
    increase that beat analyst estimates of $696.2 million. The earnings
    included a $106 million charge related to severance costs and facility
    closures.Revenue in the mobility group, which includes laptop sales,
    totaled $4.9 billion, a 22 percent year-over-year increase. Laptop
    shipments grew 43 percent during the quarter, the company said. Desktop
    revenue fell 5 percent year-over-year to $4.7 billion.Dell reduced its
    employee headcount by 7,000 in the past year, including about 3,700
    employees in the first quarter, the company said. It also added about
    2,700 employees through acquisitions. The company cut its headcount by
    3,200 by the end of fiscal 2008, which ended on Feb. 28.The company
    last year announced plans to reduce its headcount by 8,800, but during
    the quarter, CEO Michael Dell said the layoffs may exceed that number
    in an effort to further cut costs. The company wants to save $3 billion
    over the next three years.

    Dell is also realigning its
    manufacturing strategy by shutting down some factories, while opening
    new operations in emerging markets.Meanwhile, the company has opened
    factories in low-cost manufacturing countries such as Poland, Brazil,
    and India to meet the growing needs in emerging markets. Dell is
    willing to shift computer assembly to partners to reduce costs and
    boost margins.

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