Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile
    • Networking
    • PC Hardware
    • Storage

    Dell Reports Drop in First-Quarter Revenue

    By
    Michelle Maisto
    -
    May 28, 2009
    Share
    Facebook
    Twitter
    Linkedin

      For the first quarter of fiscal year 2010, Dell has reported net revenue of $12.3 billion, down 23 percent from the previous year and sequentially down 8 percent from the fourth quarter.

      Net income for the first quarter was $290 million, a drop of 784 million from the same quarter of the previous fiscal year.

      “In what is still a challenging IT demand environment, we executed well on the key elements of our strategy that we’re focused on,” Dell Chief Financial Officer Brian Gladden said in an announcement of the numbers. “We kept our focus this quarter on the elements of our business and the strategy that we felt we could control, namely delivering great technology, service and value to our customers, and continuing to drive toward the leading cost position and driving disciplined, working capital management.”

      Gladden emphasized Dell’s strong cash flow of $761 million and reduction of operating expenses, which were down by more than $300 million. Dell’s gross margin was 17.6 percent for the quarter-or 18.1 percent, excluding the impact of expenses incurred to improve organizational effectiveness, according to Gladden.

      “While there’s more to do to fully reposition us on the cost side, we continue to reduce our operating expenses across the board as well. Operating expenses were down 15 percent and were 14.2 percent as a percent of revenue. In Q1 alone we cut operating expenses $101 million and reduced them $312 million from last year,” Gladden said.

      When asked about “head count” at Dell, Gladden responded, “We’re not going to release head count information during the course of the year. We’re focused on taking cost out, not on head count.”

      Under the category of “Consolidated Operating Income,” however, severance and facilities closure expenses were estimated at $185 million, up from $134 million the previous quarter and $106 in the same quarter of the previous fiscal year.

      In a change of protocol, Dell now reports its revenue and operating income in four global customer segments: Large Enterprise, Public, SMB (Small and Medium Business) and Consumer.

      No segment significantly outperformed the others, although the Large Enterprise segment performed the most strongly, contributing 27 percent of Dell’s net revenue, followed by Public with 26 percent, SMB with 24 percent and Consumer with 23 percent.

      As for Dell’s offerings, the Mobility segment accounted for 32 percent of Dell’s net revenue, and other top earners were Desktop PCs, contributing 26 percent, and Software and Peripherals with 18 percent.

      “We hope during the second half of the year we [will] start to see some improvement, and into the next fiscal year, even more,” Gladden said.

      Avatar
      Michelle Maisto
      Michelle Maisto has been covering the enterprise mobility space for a decade, beginning with Knowledge Management, Field Force Automation and eCRM, and most recently as the editor-in-chief of Mobile Enterprise magazine. She earned an MFA in nonfiction writing from Columbia University, and in her spare time obsesses about food. Her first book, The Gastronomy of Marriage, if forthcoming from Random House in September 2009.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Information

      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×