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Guru3D.com » News » Dell's 4th Quarter Net Income Drops 48 Percent

Dell's 4th Quarter Net Income Drops 48 Percent

by Thorsten Finck on: 02/28/2009 07:33 AM | source: | 0 comment(s)

Yesterday, Dell reported that its net income for the fourth quarter, ended Jan. 30, fell 48 percent, to $351 million from $679 million reported in the fourth quarter of the prior year. Revenue dropped 16 percent, to $13.4 billion from $16 billion. That is the lowest level in earnings for Dell since 2002. As a result, they announced to cut their annual costs by an additional $1 billion - on top of the already existing $3 billion cost-cutting program, which has included layoffs and the closing of plants, for example.

"We will be the first to admit that this is a work in progress, and there is more to do," Brian T. Gladden, the company's chief financial officer said. Apparently, the main reason for this decline are the decreased desktop and laptop computer sales. Currently, Dell is trying to broaden its product offerings in a "turnaround effort". "Our strategy is to develop disruptive technology and innovation and shift our business to higher margin products and services," Mr. Dell said.







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