 |
Dell complaints
The #1 Dell complaint forum
|
| View previous topic :: View next topic |
| Author |
Message |
hotrodlincoln
Moderator
Joined: 08 Apr 2003
Posts: 1687
Location: Not in Austin anymore
|
 Posted: Thu May 29, 2008 4:16 pm Post subject: Dell profit, sales jump in 1Q, topping analysts |
 |
|
| Quote: |
By DAVID KOENIG
AP Business Writer
DALLAS — Dell Inc. said Thursday that its profit and sales grew in its fiscal first quarter, beating Wall Street expectations and signaling that the computer maker's turnaround efforts may be paying off.
For the three months ended May 2, Round Rock, Texas-based Dell Inc. earned $784 million, or 38 cents per share, up from $756 million, or 34 cents per share, in the same period a year earlier.
Dell says its revenue jumped 9 percent to $16.08 billion from $14.72 billion.
On average, analysts surveyed by Thomson Financial expected a profit of 34 cents per share on sales of $15.68 billion.
The company said strong growth of commercial and consumer products and services and lower operating costs as a percentage of sales helped drive the results above the forecasts.
Dell shares rose 12 cents Thursday, closing at $21.81 before the quarterly results were released. In the first few minutes of extended trading, the shares jumped $1.51 or 6.9 percent.
Dell is trying to cut costs by $3 billion while also chasing Hewlett-Packard Co. in worldwide shipments of personal computers, a category it once led.
Dell still leads HP in U.S. PC sales, according to technology research firms IDC and Gartner Inc., but that could make Dell more vulnerable to a slowdown in the U.S. economy.
"People are holding back from spending" on desktops in the U.S., Chief Financial Officer Donald J. Carty told reporters. But sales of servers and data-storage equipment are holding up, he said.
The company reported that worldwide notebook computer shipments rose 43 percent from a year ago. Carty attributed the increase to a continuing shift from sales of desktops to notebooks and Dell gaining a greater market share of notebook sales.
On the cost side, Carty said the company has cut 7,000 jobs from a year ago, including 3,700 during the past quarter, while adding about 2,700 employees through acquisitions.
Founder Michael Dell, who has returned to the company as chief executive, said last month the company would go beyond its earlier goal of cutting more than 8,800 jobs. He pledged to slash costs by $3 billion over several years to boost profits.
Carty, who plans to step down next month, said the biggest challenges for the company now were continuing to control costs and, "We've got to continue to improve the product line."
|
http://www.statesman.com/business/content/shared-gen/ap/High_Tech/Earns_Dell.html |
|
| Back to top |
|
 |
Sponsor
|
|
|
AngelusDaemonicus
Dances with Hate
Joined: 08 Mar 2008
Posts: 111
|
| Posted: Thu May 29, 2008 4:58 pm Post subject: |
|
|
Blood money. Made from kicking folks out the door. So, if they want profits to increase, sack more employees... eventually there will be nobody on the phones or in HR (no big loss there, CCO, either) and what then?
_________________
"One man's garbage is another man's DELL." |
|
| Back to top |
|
|
Rocke_T_Sinetist
Moderator
Joined: 26 Aug 2005
Posts: 2588
Location: DFW airport
|
| Posted: Thu May 29, 2008 5:11 pm Post subject: |
|
|
Well, they've completely offshored (colloquial term, 'shitcanned') engineering except for enterprise. They're dumping more assembly onto vendors.
Yeah, that adds value to the company.  Thus their stock is worth half as much--in inflated dollars--as it was 10 years ago.
Congratulations, Dell. Mercedeses all around.
_________________
Rocke T Sinetist
as in, 'it doesn't take a...' |
|
| Back to top |
|
|
FallenAngel
Super Hater
Joined: 21 Feb 2006
Posts: 1490
|
| Posted: Thu May 29, 2008 5:43 pm Post subject: |
|
|
Eventually they'll run out of things (workforce) to trim out, and then what? It's a law of inevitability. Sooner or later they'll have nothing left to trim. Then, while still trailing HP by a large margin, what would they do next?
Downhill. All downhill for them from here. Enjoy your short term buoyancy MD, because it sure won't last. |
|
| Back to top |
|
|
Sponsor
|
|
|
Rocke_T_Sinetist
Moderator
Joined: 26 Aug 2005
Posts: 2588
Location: DFW airport
|
| Posted: Thu May 29, 2008 6:19 pm Post subject: |
|
|
I go to the Brazilian Portuguese board and translate business texts for the members. More, I explain what the twisted use of English in business writing means, as I do not speak Portuguese beyond reading simple sentences.
A recent one dealt with this exact issue, in that corporations can only milk these austerity measures so far.
So even business texts, which have largely gotten us into this mess in the last 20 years, are aligned against him.
_________________
Rocke T Sinetist
as in, 'it doesn't take a...' |
|
| Back to top |
|
|
HellComputer
Dances with Hate
Joined: 16 Feb 2006
Posts: 210
|
| Posted: Thu May 29, 2008 8:15 pm Post subject: Do the math |
|
|
7000 fewer jobs from 1 year ago * $100K cost per person = 700 Million dollars saved over the year.
Dell earned 784 Million last quarter, so roughly 1/4 of Dell's profits can be attributed to the terminations. Without this slash and burn, Dell stock price would have ended up around $15 / share. Revenue would have dropped 15 % instead of rising 9%. |
|
| Back to top |
|
|
FallenAngel
Super Hater
Joined: 21 Feb 2006
Posts: 1490
|
| Posted: Thu May 29, 2008 9:29 pm Post subject: |
|
|
| Yes, but they have a finite number to cut from. And what are they going to do when that pool only has a shallow end left? |
|
| Back to top |
|
|
AngelusDaemonicus
Dances with Hate
Joined: 08 Mar 2008
Posts: 111
|
| Posted: Thu May 29, 2008 11:44 pm Post subject: |
|
|
DELL is on "Life-Support" at this point. I think even Mikey D knows that.
DELL, as a multi-billion dollar corporate entity, won't go much farther. As you've pointed out... as EVERYONE has pointed out, how many more cuts can the company actually stand to take? At some point, there simply won't be a competent work-force left. Let's face facts, going over-seas is cheaper, but the workers there don't give a crap... and aren't allowed to give a crap. I heard nothing but complaints about the service customers received from over-seas phone support. No offense meant to folks at those sites, but they're sloppy and rushed. This bites DELL in the ass, time and time again.
Part of what made customers happy was North-American tech-support. And it's not just a language-barrier thing. Most customers wanted to keep their hard earned dollars in the U.S. and were OK with a Canadian helping them out. They don't want PCs that are completely foreign and they don't want a tech who they can't relate to.
Some calls lasted 4 hours... you get to know someone pretty well in that time and get to talking about life and sports and whatnot during a long scan. The personal service was worth it's weight in gold. That's why I originally joined DELL. I wanted to help those folks and at the time, DELL not only allowed me to help, but supported me fully. Then came "Total Solutions" and rushed calls.
DELL just never clued in. Many customers told me that they would pay any price to get North-American support... ANY PRICE.
DELL messed up. What a shock, huh?
_________________
"One man's garbage is another man's DELL." |
|
| Back to top |
|
|
Sponsor
|
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Usergroups
Register
Profile
Log in to check your private messages
Log in
