Menu
Dell reports strong first-quarter earnings

Dell reports strong first-quarter earnings

Dell reports strong earnings for the first quarter of 2009, driven by strong laptop sales.

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 US$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 like 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.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments