Feeds

Dell sales go 'over there'

Employee axing is relaxing bottom line

Boost IT visibility and business value

Dell posted a strong first quarter in its fiscal 2009, but the results, which beat many Wall Street estimates, shouldn't be taken as a sign that US companies are opening their wallets again.

For the first time ever, Dell's overseas sales accounted for the majority of its revenues. The major contributors to the number two computer maker's coffers were Brazil, Russia, India and China — dishing out almost 9 per cent of Dell's total revenue.

Dell's total Q1 revenue was $16bn, up 9 per cent from the same period last year. Net income was $784m, up almost 4 per cent from fiscal Q1 2008.

Round Rock also attributed the quarter's financial success to its ongoing corporate restructuring, and yes, all the employees it's been axing lately.

The company says it has slashed 7,000 jobs in the past year. Just in Q1 it reduced the headcount by some 3,700 employees. That figure is counterbalanced by taking in an additional 2,700 employees through acquisitions, making the net reduction about 5 per cent.

Notebook revenue has also taken off for Dell. Sales advanced 22 per cent, to $4.9bn. That made mobile sales in Q1 account for almost a fifth of overall sales.

Server revenues rose 4 per cent over the previous year, earning Round Rock $1.65bn in Q1 2008. Desktop PC revenues fell 5 per cent to $4.7bn. Storage revenues grew 15 per cent to $631m. Dell services grew 13 per cent to $1.45bn.

In its forecast for upcoming quarters, Dell said it will continue to incur costs as it restructures, reduces headcount, and invests in infrastructure and acquisitions.

Dell said it still sees "conservatism in IT spending in the U.S. particularly with its global and large customers as well as public, small and medium business accounts." That sounds like — yes — pretty much everyone.

That conservatism will likely continue through the summer, the company said. Dell also restated it plans to reduce costs by $3bn annually by fiscal 2011. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.