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Dell recovery gathers pace

by Scott Bicheno on 30 May 2008, 10:33

Tags: Dell (NASDAQ:DELL)

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On the up

Dell’s most recent quarterly financials will make reassuring reading for CEO Michael Dell. After some dodgy quarters leading up to this, it reported revenue of $16 billion, which is a nine percent year-on-year (YOY) increase.

Helpfully, Dell said that the reason it did better was because it sold more stuff and lowered more overheads.

“We are executing on all points of our strategy to drive growth in every product category and in every part of the world,” effused Michael Dell.

“These results are early signs of our progress against our five strategic priorities. Through a continued focus, we expect to continue growing faster than the industry and increase our revenue, profitability and cash flow for greater shareholder value.”

Dell fiscal quarter one financial summary

A significant trend was that this was the first quarter ever that Cell earned more money from international sales that from the US, with the major emerging economies – Brazil, Russia, India and China (BRIC) – leading the charge with 73 percent YOY volume growth and 58 percent YOY revenue growth. These accounted for nearly nine percent of Dell’s overall revenue.

EMEA revenue increased 15 percent and volume was up 30 percent, with notebooks leading the way. Dell’s UK operations experienced 20 percent unit growth.

Looking forward, Dell sees a slowdown in corporate IT spending that will continue through the summer. However it expects to continue to do well in BRIC countries and will continue to cut overheads (jobs?) – targeting $3 billion in annualised savings by fiscal 2011.

Press release: Dell Increases Revenue and Earnings, Lowers Operating Expenses

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