Date: Tuesday June 3, 2008 10:57:07 am
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AnonymousInactive
http://www.infoworld.com/article/08/05/29/Dell-reports-strong-first-quarter-earnings_1.htmlDell reports strong first-quarter earningsComputer maker beats analyst expectations in net revenue and reported net income for the quarterjune
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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