Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • 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
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • 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

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      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.

      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.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 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.

      ×