“Dell Inc.’s fiscal fourth-quarter net income slumped 48% as shipments fell globally and the economic slowdown continued to hurt information-technology spending,” John Kell reports for Dow Jones Newswires.
“In response to the downturn, Dell has been trimming costs, boosting promotions and reducing its work force as part of a broad plan outlined in March to remove $3 billion in costs over three years. On Thursday, the company boosted that target to $4 billion, and operating expenses declined 16% in the latest quarter,” Kell reports.
“Chief Executive Michael Dell’s turnaround plan that started in 2007 has faltered, leading two top executives to leave Dell late last year. The company’s stock has lost two-thirds of its value the past six months,” Kell reports.
MacDailyNews Take: Mikey, Dustbin of history. Dustbin of history, Mikey.
Kell continues, “For the quarter ended Jan. 30, [DELL] reported net income of $351 million, or 18 cents a share, down from $679 million, or 31 cents a share, a year earlier… Revenue decreased 16% to $13.43 billion.”
MacDailyNews Take: Dell had to generate $13.43 billion in order to eke out a measly $351 million. That’s just plain awful.
Kell continues, “Gross margin fell to 17.2% from 18.7% amid the sales woes. Revenue for desktop personal computers fell 27% while revenue for mobility, which mainly comprises sales of notebook computers but which includes other mobile devices, decreased 17%. Revenue from Dell’s core business customers in the Americas fell 17% as shipments decreased 23%. Revenue from the key emerging markets of Brazil, Russia, India and China dropped 17% amid a 19% decline in shipments.”
Full article here.
MacDailyNews Take: Dell could cease to exist immediately and nobody outside of the company and its shareholders would give a flying toaster. They offer nothing unique; just plug in the next Windows box assembler.
We do have a solution for Mikey Dell, albeit one that he might have heard before: “Shut it down and give the money back to the shareholders.”