Menu
Dell records 48 percent drop in net income

Dell records 48 percent drop in net income

Dell's net income fell 48 percent for the fourth quarter, and the company increased its cost-cutting goal to $4 billion.

Dell's net income dropped 48 percent for the fourth quarter, the company said Thursday, as it also announced it is increasing its cost-cutting goal to US$4 billion by the end of fiscal 2011 as it tries to come to terms with the recession.

The company recorded net income of $351 million for the fourth quarter ended Jan. 30, a 48 percent drop from the $679 million it recorded in last year's fourth quarter. Net income per share was $0.18. Analysts polled by Thomson Reuters expected net income of $496 million.

Revenue fell to $13.4 billion, a 16 percent drop from a year ago, and short of analyst estimates of $14.2 billion.

Reduced IT spending has taken its toll on the company, with spending deferred until the economy improves, CEO Michael Dell said in a statement. However, the company is taking other steps to reduce costs to adapt to the recession.

The company now aims to reduce costs by $4 billion by the end of fiscal 2011, a change from the original target of $3 billion announced in May.

The steps Dell has taken in the past to cut costs include compensation reduction, staff cuts, restructuring its product design and distribution, and realigning its manufacturing strategy by shutting down factories.

"Within our business, we're being very disciplined in managing costs, generating profitability and cash flow, and investing in ways that separate Dell from others today and when the economy inevitably improves," Dell said.


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

Meet the leading customer-centric Microsoft channel partners

Meet the leading customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the leading customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments