Feeds

Dell cheers Q1 with workforce decimation

2.0 - 8,000 = more money

3 Big data security analytics techniques

Dell will decimate its workforce over the next year, eliminating more than 8,000 jobs. The company released word of this restructuring as it dished out first quarter financial results that beat market expectations.

Reinstalled CEO Michael Dell vowed to make cuts during a recent interview, saying Dell's headcount has grown by 50 per cent in recent years, while revenue has grown just 15 per cent. "That's not a good idea," Dell said. So now the company plans to cleave 10 per cent of its staff in a bid to reduce costs and return Dell to its glory days status.

"While reductions in headcount are always difficult for a company, we know these actions are critical to our ability to deliver unprecedented value to our customers now and in the future," CEO Dell said, in a statement today.

For the first quarter, Dell reported revenue of $14.6bn up from $14.2bn reported in the same period last year. Net income, however, dipped to $759m from $762m.

Despite the net income drop, the results appeared to please Wall Street, which expected lower revenue and net income totals. Shares of Dell were up 5 per cent in after-hours trading, at the time of this report, to $28.40.

(All of the financial results in this report are considered preliminary due to an ongoing investigations into Dell's accounting practices. Dell spent $46m during the quarter to deal with these investigations.)

Dell's first quarter was blessed by declining component costs and healthier high-end product sales, the company said. Notably, Dell's server revenue grew 19 per cent year-on-year to $1.6bn, while storage revenue rose 13 per cent to $500m. Dell also notched a 7 per cent rise in laptop sales to $4.0bn and a 6 per cent increase in software and peripherals sales to $2.3bn.

The desktop market remained very tough for Dell with revenue dropping 6 per cent to $4.9bn. Services revenue dropped as well to $1.3bn from $1.4bn in the same period last year.

Dell declined to provide a, er, numbers-based second quarter forecast. Instead, it warned investors to have patience as Dell 2.0 takes shape.

"While progress in the first quarter was encouraging, the company is focused on transformational efforts aimed at IT simplification that are designed to yield more robust and targeted customer solutions, superior customer experience, and expanded growth opportunities in the coming years," the company said. "These efforts may cause short-term fluctuations in operating performance, but the company believes they will produce a more optimal and sustainable balance of growth, profitability and liquidity in the long-term, driving sustainable returns for shareholders." ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.